Both transactions were completed during the quarter ended June 30. The company purchased a contract at a cost of approximately $170 million using plan assets from Hess Corp’s employee retirement plan. and approximately $80 million using plan assets from the HOVENSA Legacy Employee Retirement Plan. . Also for the latter plan, the company distributed lump sums totaling $20 million to “certain participants” to “settle the plan’s projected benefit obligation,” according to filing 10-Q.
The 10-Q filing did not provide the amounts of assets or liabilities that were transferred.
In 2019, Hess purchased a group annuity contract from Massachusetts Mutual Life Insurance Co. to transfer $270 million in U.S. retirement plan liabilities, all from Hess Corp’s employee retirement plan.
As of December 31, 2020, the Hess Corp. and the HOVENSA Legacy Employee Retirement Plan had $2.2 billion and $150 million in assets, respectively, according to the plans’ most recent Form 5500 filings.
According to the company’s latest 10-K filing, as of December 31, global pension plan assets totaled $3.36 billion and projected benefit obligations totaled $2.95 billion, for a funded ratio of 113.9%. The company has US and UK plans and has not provided assets by region.
Spokeswoman Lorrie Hecker could immediately provide further information.