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Cash Accumulation Formula Pension Plan

Hess Benefits Resources

STD Coverage

Hess provides STD coverage at no cost to you. STD coverage replaces all or a portion of your pay if you become unable to work due to an illness or injury lasting more than five days. STD coverage will replace 100 percent of your annual base pay for the first 13 weeks, and then 60 percent of your annual base pay for the next 13 weeks. The maximum 26 weeks of STD benefits satisfies the 26-week waiting period for LTD.

How Accident Insurance Works

Hess provides three types of accident insurance protection.

Optional Life Insurance

You can purchase Optional Life Insurance coverage for yourself, and you can also choose to cover your spouse, same- or opposite-sex domestic partner and dependent children. You can change your coverage at any time. Optional Life Insurance benefits are paid if the person dies while covered under the plan.

Basic Life Insurance

You automatically receive Basic Life coverage. You do not have to enroll, and you do not pay for this coverage. You will need to designate a beneficiary to receive the Life Insurance benefits.

Ready to Retire?

You’ve worked hard and made a significant contribution to making Hess a special company. And now you’re thinking about retiring. Hess provides the information, tools and resources to help you make a smooth transition to retirement when you’re ready. Here’s a quick look at the eight steps to retirement.

1. Start Planning
   You’ll want to start planning at least six months in advance of the day you wish to retire.
2. Share Your Plan
   At least three months before your retirement date, share your plan with your manager, your HR representative and the Hess Benefits Center.
3. Request Your Benefit Commencement Package
   You’ll need to complete some paperwork to start the retirement process.
4. Continue Your Medical Coverage
   Understand your options for medical and dental coverage in retirement.
5. Consider Applying for Social Security
   You can begin receiving your full Social Security benefits at age 65, 66 or 67, or opt for a reduced benefit as early as age 62.
6. Sign Up for Medicare
   You may want to sign up to receive Medicare beginning at age 65.
7. Understand How Your Benefits Change
   Be sure you get the full picture well in advance.
8. Decide When to Receive Your Savings Plan Balance
   You can request a lump-sum payment from your Savings Plan account right away, move your money to another account or leave it in the account until age 70½ (when minimum distributions must begin).

For more information, review Making the Transition to Retirement.

MAP YOUR PATH TO RETIREMENT

• When do you want to retire?
  Think about at what age you would like to retire. This will affect how much you should contribute to your Savings Plan and what type of investments you should make.
• How much will you need to save?
  Think about how much money you will need when you retire. On average, you’ll need 70 – 80 percent of your pre-retirement income each year to live comfortably. Keep in mind that even though you are contributing to Social Security now, the age at which you are eligible to receive those benefits may rise, and the Social Security benefit may decrease. Also, with the changing economy and rising inflation, the cost of living is increasing as your purchasing power is decreasing.
• What are you currently saving?
  Take a moment to assess how much you are contributing to your Savings Plan, where your contributions are currently invested and how much you have saved. This will help you decide if you need to make any changes.
• Are you getting the full company match?
  The company will match every $1 you contribute with $1.33, up to 6 percent of your eligible pay. Take advantage of this opportunity and make sure you are not leaving any money on the table.
• When do you want to pay taxes on your Savings Plan contributions?
  There’s no way to avoid paying taxes on retirement income, but you have a choice about when you pay taxes — now or later. You can contribute before-tax dollars to get a tax break now or after-tax dollars to avoid paying taxes in retirement.
• What kind of investor are you?
  Your allocation strategy should align with what type of investor you are: conservative, moderate, growth or aggressive growth. Take the quiz on page 6 of the Hess Savings Plan Investment Guide to see what your risk tolerance is and what type of investments may be best for you.
• Where do you want to be?
  When it comes to investing, do you want to be in the driver’s seat or cruising in the passenger’s seat? You have the option of letting someone else take the steering wheel to manage your funds, or you can take control and actively manage your funds yourself. See the Choose Your Seat section on page 16 of the Hess Savings Plan Investment Guide for help deciding which strategy is best for you and your investment needs.

How to Pay

You will be billed directly each month for the cost of Retiree Medical coverage.

Who You Can Cover

If you currently are or previously were enrolled in the Retiree Medical Plan, you can cover your spouse or domestic partner under age 65 and your dependent children through the end of the calendar year of their 26th birthday (who are not eligible for Medicare due to disability) under the Retiree Medical Plan.