Page 17 - Hess Pension 2017

Key Terms
Pay Credits
Pay credits are determined by multiplying your monthly compensation by a percentage based on your age as shown in the table on page 6. Generally, compensation includes your base pay, overtime and Annual incentive Plan (AiP) award. like interest credits, pay credits are deposited into your cash
Accumulation Account on the last day worked each month. Pay credits will continue to be added until the last day of the month before you begin receiving your plan bene t.
Pension Bene t Guaranty Corporation The Pension Bene t Guaranty corporation (PBGc) protects the retirement incomes of American workers funded from de ned bene t pension plans, including the Hess corporation Employees’ Pension Plan.
Plan Year
The plan year is January 1 through december 31.
Rehire
if you were a participant under the Traditional Formula in the Pension Plan prior to december 31, 2016, and were rehired on or after January 1, 2017, you will not lose your prior vesting service in certain situations.
1. if you had at least ve years of vesting service under the Traditional Formula in the Pension Plan before leaving Hess, you are automatically fully vested in the cash Accumulation Formula in the Pension Plan. The break in service rule (see Break in Service on page 13) does not apply to you in this situation.
2. if you did not have at least ve years of vesting service under the Traditional Formula in the Pension Plan before leaving Hess and you did not have a break in service, your prior vesting service counts toward satisfying the three-year vesting requirement under the cash Accumulation Formula in the Pension Plan.
in all cases, credited service that is used to calculate bene ts under the Traditional Formula in the Pension Plan is frozen as of your termination date prior to January 1, 2017.
if you are eligible for a vested pension bene t under both formulas, you can make separate elections for when and how to receive each pension bene t.
Service
Beginning with your date of hire, you will be credited with one year of service for each consecutive 12-month period during which you work at least 1,000 hours.
Social Security Retirement Age
Social Security’s full bene t retirement age is increasing gradually because of legislation passed by congress in 1983. if you were born in 1943 –1954, your full bene t retirement age is 66, and will gradually rise to 67 for those born in 1960 or later. Early retirement bene ts under Social Security will continue to be available at age 62, but they will be reduced.
Vesting
Even though you become a member of the plan after one year and your pension bene ts are being credited to you, they aren’t 100 percent yours until you become fully vested. vesting is the process of becoming entitled to your retirement bene t. Under the plan, you are vested when:
■ you complete three years of service from your date of hire, or
■ you reach normal retirement (age 65) and have at least one year of vesting service.
KEy TERmS 15