Traditional Formula Pension Plan

Can I change to the Cash Accumulation Formula?

No. We considered that approach, but our analysis showed that very few, if any, employees hired before January 1, 2017, would benefit from the new plan (and no one would after a relatively short time) and there may be legal risk should someone make a poor choice that could not be reversed later.

Why didn’t we move everyone into the new plan?

Hess wanted to honor the commitment we made to you when you joined the company and preserve the benefit.

Why was the Hess Cash Accumulation Formula Pension Plan introduced?

As it has for all company practices, the Board of Directors initiated a thorough review of all U.S. benefits programs to be sure that they are appropriate now that we are a much smaller, E&P company. We considered value to employees, attractiveness to recruits and cost.

Our analysis showed that our peers, and many companies outside of our industry, have moved away from traditional final average pay pension plans like ours to plans that are similar to the Hess Cash Accumulation Formula Pension Plan. Also known as cash balance pension plans, these plans are typically easy to understand because the earned value is visible from day one and the money can be taken with you when you leave the company. Offering this new formula to employees hired on or after January 1, 2017, will save millions of dollars over time. More importantly, it positions Hess to reaffirm and strengthen its commitment to existing employees (hired before January 1, 2017) to provide a pension benefit based on the Traditional Formula while providing a sustainable pension benefit to new and future employees (hired on or after January 1, 2017) under the Cash Accumulation Formula.

What Happens If I Go Out of Network?

When you use an out-of-network provider, the plan will pay coinsurance based on Anthem’s maximum allowed amount. You are responsible for any portion of the provider’s charge that exceeds this amount. For example, if you have met your deductible, the plan will pay 65 percent of the maximum allowed amount for out-of-network care.

If your out-of-network provider charges $600 for a procedure and Anthem’s maximum allowed amount for the procedure is $500, you would pay 35 percent of the maximum allowed amount (35% x $500 = $175) plus the $100 that exceeds the maximum allowed amount, for a total of $275.

This website provides highlights of the Hess Corporation benefits plans and programs for 2022. 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.