The Cash Accumulation Plan pays you a benefit at retirement, if you have at least three years of service with Hess. You don’t have to contribute anything. The benefit is based on pay and interest credits, and increases as your salary and age increase.


You’ll automatically participate in the Cash Accumulation Plan if you:

  • Were hired or rehired on or after January 1, 2017
  • Are a full-time or part-time employee
  • Complete one year of vesting service (12 consecutive months with at least 1,000 hours worked)

What’s a Cash Accumulation Plan?

The Cash Accumulation Plan combines elements of a traditional defined benefit pension plan and a defined contribution plan, but in a way that gives Hess a more precise projection of future obligations. Under this plan, Hess contributes a defined amount to a notional account annually, based on eligible compensation, and guarantees that the account will grow by a fixed percentage annually. When you reach retirement age, you can take the accrued amount either as a lump sum or an annuity. Similar to a defined contribution plan, you can roll your account balance over to another tax-qualified plan if you leave before you are ready to retire.

In contrast, the Hess Corporation Employees’ Savings Plan (Savings Plan) is a “defined contribution” retirement plan, where you and Hess both contribute money into your savings account. With a defined contribution plan, it’s harder to predict the amount you will have at retirement, because that amount will depend on how much you contribute, the market and the investments you choose.


You don’t make any contributions to the Cash Accumulation Plan. Hess pays 100 percent of the cost of your benefit.


You don’t have to make any investment decisions for the Cash Accumulation Plan. Hess manages the investment portfolio.


Even though you participate in the plan after one year and your benefits are being credited to you, they aren’t 100 percent yours until you become fully vested.

You are vested as soon as you:

  • Complete three years of vesting service from date of hire, or
  • Reach normal retirement (age 65) and have at least one year of vesting service


Your Cash Accumulation Plan account is portable, like your Savings Plan account. You can take it with you when you leave Hess in the form of a lump sum or an annuity.

If you are not ready to retire when you leave Hess, you can elect a lump-sum distribution and then roll it over into another employer’s tax-qualified plan or to an Individual Retirement Account (IRA) to maintain the tax advantage until you retire.

How Does It Work?

There’s not a lot you need to do when it comes to the Cash Accumulation Plan. Hess makes contributions to your account on your behalf and manages the investment portfolio. You don’t contribute or make investment decisions, but you still need to understand how it works.

First, let’s define some terms. Then we’ll show you how these factors work together to determine your benefit under the Cash Accumulation Formula. You’ll find more key terms explained in the Hess Cash Accumulation Plan Guide.

  • Age — This is your age in completed years as of the last day of the prior month.
  • Cash Accumulation Account — Your pay credits and interest credits are held in a notional account until you retire or leave Hess.
  • Interest Credits — These are determined by multiplying your opening account balance by an interest rate. The interest rate is based on the 30-year Treasury bond rate set the prior November and cannot be lower than 1 percent. For example, the annual rate for 2023 is 4 percent. Interest credits are deposited into your Cash Accumulation Plan account shortly after the last day worked each month.
  • Pay Credits — These are determined by multiplying your monthly compensation by a percentage based on your age as shown in the table below. Generally, compensation includes your base salary, overtime and annual incentive reward. Like interest credits, pay credits are deposited into your Cash Accumulation Plan account shortly after the last day worked each month.
AgePay Credit
Under 305%
30 – 396%
40 – 497%
50 and older8%

Here’s how these factors work together to determine your benefit at age 65 under the Cash Accumulation Plan:

How Much Will I Receive?

Financial experts estimate that you’ll need about 80 percent of your preretirement income to live comfortably in retirement. The Hess Cash Accumulation Plan can play a role in reaching that objective, especially if you participate in the Hess Savings Plan and get the full company match. See the Hess Cash Accumulation Plan + Savings Plan Brochure for more information.

The value of your Cash Accumulation Plan account depends on your age, eligible compensation and the Treasury bond rate over time. How much you receive also depends on the payment option you choose and when you choose to receive it. Read on to learn about plan features and terms you need to know. Then, take advantage of your tools and resources to help with your retirement planning.

Understand Your Payment Options

You can choose among a variety of payment options to meet your personal retirement needs. Payment options are grouped into “normal” and “optional” forms. Think about the normal form as the default based on your marital status when you retire.

If you are single when you retire, you can choose any form of payment. If you are married and want to choose an optional form of payment other than one of the Joint and Survivor options, your spouse must agree in writing.

After reviewing your payment options, be sure to go online and estimate what your monthly payments will be under each option. Consider your decision carefully because you cannot change the form of payment after payments begin.

Normal Forms of Payment

Single Life Annuity
If you are single when benefits begin, the normal form of payment is a single life annuity that provides monthly payments to you for your lifetime. When you die, no further benefits are payable to anyone else.

Qualified Joint and Survivor Annuity
If you are married when your benefits begin, the normal form of payment is a qualified joint and survivor annuity. This pays you a reduced benefit during your lifetime so that when you die, your spouse, if he or she survives you, will receive 50 percent of the benefit you were receiving for the rest of his or her life.

Optional Forms of Payment

You may select one of the following optional forms of payment instead of your normal form. However, if you are married when you retire, your spouse must consent to your election in writing unless you elect one of the Joint and Survivor options.

Single Life Annuity
This is the same as the normal form of payment for a single person. It provides monthly benefits during your lifetime only, with no benefits payable to anyone else after your death.

662/3%, 75% or 100% Joint and Survivor Options
These options provide reduced monthly benefits during your lifetime so that after your death your designated beneficiary receives a percentage of that reduced monthly benefit for the rest of his or her life. The larger the percentage for your survivor, the less you will receive during your lifetime.

Certain and Continuous Annuity Option (Five or 10 Years)
This payment option provides reduced monthly benefits during your lifetime. If you die before receiving all of your payments during the guaranteed period (five or 10 years), your beneficiary will be paid the same amount you were receiving for the remainder of the guaranteed period. After all the guaranteed payments are made, payments to the beneficiary will stop. The longer the guaranteed period, the greater the reduction in your benefit.

Lump Sum
This option provides a one-time payment for the value of your Cash Accumulation Plan account balance. A lump-sum payment is taken in lieu of recurring payments distributed over a period of time.

Planning Ahead

Hess provides tools and resources you can use to plan ahead.

Designate Your Beneficiaries

You must designate a beneficiary to ensure that, in the event of your death, your Cash Accumulation Plan benefits are distributed according to your wishes. To designate or change beneficiaries, visit the Hess Benefits Center at Fidelity and click on the tile for the pension plan. If you need help, call Fidelity at 1-877-511-4377, Option 2. A representative can walk you through the process.

This website provides highlights of the Hess Corporation benefits plans and programs for 2024. If there is any discrepancy between the information provided on this website and the official plan documents, the official plan documents will govern. Hess reserves the right to amend or terminate the plans at its discretion at any time.