Pension Plan

The Pension Plan is a “traditional” defined benefit plan. It pays a benefit that’s based on a formula involving salary and length of service. The Pension Plan is financed entirely by Hess.


You are automatically eligible to participate in the Traditional Formula Pension Plan if you:

  • Were hired before 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)

To receive your pension benefit, you must be:

  • Age 65 (normal retirement)
  • Age 55 – 65 and have at least 10 years of vesting service with the company (early retirement, reduced benefit if under age 60 at commencement)
  • Totally and permanently disabled (with 10 or more years of vesting service and a Social Security disability benefits award)


You don’t make any contributions to the Pension Plan. Hess pays 100 percent of the cost for your pension benefit.


You don’t make any investment decisions for the Pension Plan. Hess manages the Pension Plan’s portfolio of investments for all participants.


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

You are vested when:

  • You complete five years of vesting service from date of hire, or
  • You reach normal retirement (age 65) and have at least one year of vesting service

How Does It Work?

There’s not a lot you need to do when it comes to the Pension Plan. Hess funds it and manages the investment portfolio, so you don’t have to 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 pension benefit under the plan.

  • Credited Service — The total number of years and months you work at Hess.
  • Final Average Compensation — This is your average annual compensation (base salary, overtime and annual incentive award) based on the highest-paid three calendar years (consecutive or non-consecutive) in the 10 years immediately before your retirement or earlier termination of employment.
  • Primary Social Security Amount — The estimated annual benefit you’re eligible to receive at age 65 under the federal Social Security Act in effect on your retirement date or earlier termination of employment.

Here’s how these factors work together to determine your pension benefit:

How Much Will I Receive?

Financial experts estimate that you’ll need between 70 and 80 percent of your pre-retirement income to live comfortably in retirement. The Hess Pension Plan can play a role in providing retirement income that may be more predictable than income from a 401(k) plan, such as the Hess Savings Plan.

The amount of income that you may receive from the Pension Plan depends on a number of factors, including how long you work for Hess, your eligible compensation, your payment option and when you choose to have pension payments begin. For example, your full benefit is payable at age 65, but you may be able to receive a reduced benefit earlier. Read on to learn about plan features, other terms you need to know and how to use online tools and resources to factor the Pension Plan into your retirement planning along with the Savings Plan.

Understand Your Payment Options

You can choose among pension 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 leave or retire.

If you are single when you leave or 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 Form 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 form 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 leave or 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.

66%, 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.

Planning Ahead

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

Types of Retirement

You can choose to retire when it’s right for you, but make sure you understand the trade-off.

Normal Retirement

If you leave Hess at age 65 or older, you may start receiving your pension immediately without a reduction. Your pension does not begin until you actually retire, so if you continue to work at Hess after age 65, you will continue to accumulate additional pension benefits and will receive a higher benefit based on additional years of Credited Service.

Early Retirement

You are eligible for early retirement from Hess if, on your last day of employment, you are 55 to 65 years of age and have at least 10 years of vesting service. Please keep in mind that if you start receiving your pension before age 60, the monthly amount is reduced to take into account the additional years of payment.

Terminated Vested Participant

If you are 55 to 65 years of age on your last day of employment with at least five but less than 10 years of vesting service, you are eligible to start your Hess pension payments at age 65.

Designate Your Beneficiaries

You must designate a beneficiary to ensure that, in the event of your death, your Traditional Formula Pension 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.