HESS CORPORATION EMPLOYEES SAVINGS PLAN

Transcription

1 HESS CORPORATION EMPLOYEES SAVINGS PLAN TRANSITION GUIDE JANUARY 2017

2 Guiding you through the exciting changes ahead The Hess Corporation Employees Savings Plan is a 401(k) plan that helps provide retirement income based on your contributions, company contributions and the performance (gains or losses) of the funds in which you choose to invest, IRS-allowed tax advantages, compound interest, and more. On February 1, 2017, Fidelity Investments will become the provider of administrative services for the Hess Corporation Employees Savings Plan. With more than 65 years of financial services experience, Fidelity can help you put a plan in place that balances the needs of your life today with building financial security for tomorrow. Getting ready for the changes To make the most of this important benefit, you need the right information, resources, and support so you can make decisions with confidence. This guide provides details on the transition, the changes coming your way, and how these changes will affect you as well as action steps you can take today to prepare. Use this guide as a resource to help you take an active role in your retirement planning. Be sure to read the Important Notice Concerning Your Rights Under the Hess Corporation Employees Savings Plan that you received in December. It provides information regarding the blackout period after which your Savings Plan account will transfer to Fidelity: The blackout period for hardship withdrawals, distributions and loans will begin at 3 p.m. CT on January 20, The blackout period for changing contribution amounts and making changes to your investment options will begin at 3 p.m. CT on January 27, The blackout period is expected to end no later than the week of February 19, If you have any questions, contact The Benefits Center at

3 Contents Transition Highlights Page 2 Learn about 2017 contribution limits, new plan services, and information on how payroll contributions and loans will be handled during the transition. Activity Calendar Page 3 View the key transition dates and take note of services that may be temporarily unavailable during the transition. Key Dates and Action Steps Page 4 Read the list of actions you need to take before the blackout period begins and after the transition to Fidelity is complete. Investment Options Page 5 Review the Savings Plan s current investment lineup. Tools and Resources Page 7 Discover how Fidelity can help you plan for the future and help build financial security. A SPECIAL NOTE FOR FORMER EMPLOYEES, ALTERNATE PAYEES, AND PLAN BENEFICIARIES If you are a former employee, alternate payee, or beneficiary with an account balance in the Savings Plan, some of the information in this guide may not apply to you. However, you will be affected by the upcoming transition, so please read this material carefully.

4 Transition Highlights Here are 2017 Savings Plan contribution limits, new plan services, and information on how payroll contributions and loans will be handled during the transition. What s new ANNUAL INCREASE PROGRAM NETBENEFITS WEBSITE: NETBENEFITS.COM WORKPLACE PLANNING AND GUIDANCE SUPPORT INVESTOR CENTERS What will continue during the transition period CONTRIBUTION LIMIT PAYROLL CONTRIBUTIONS AND COMPANY MATCH OUTSTANDING LOANS An optional service that helps you keep pace with your goals by increasing your contribution amount each year. Access to Fidelity s comprehensive website dedicated to retirement planning. Here is where you will manage your account, make decisions on your investment choices, and find interactive tools and calculators to help you better prepare to meet your retirement savings goals. Fidelity representatives are knowledgeable professionals equipped with detailed information about the Savings Plan and the financial know-how to help get you on your way. Fidelity has more than 190 Investor Centers across the country. The professionals in the Investor Centers are trained to provide you with the latest retirement planning insights and investment help. There may be a charge for Investor Center products and services that are beyond those offered by the Savings Plan. You can contribute between 1% and 25% of your annual pay, in 1% increments. For the year 2017, the maximum total annual employee contribution you can make will be $18,000 ($24,000 if you are over age 50). Your before-tax contributions deducted from your pay, including catchup contributions (if applicable), in effect before January 27, 2017, will continue and transfer to Fidelity. Company matching contributions will also continue during the transition. All contributions will be invested according to your current investment elections on file. If you do not have investment elections on file, they will be invested in Vanguard Federal Money Market Fund Investor Shares. 1 Any outstanding loan balances in the Hess Corporation Employees Savings Plan will transfer to Fidelity. If you are currently an active participant in the plan, you will continue to repay your loan in the same manner as you have with Xerox. The transition will not affect the terms or length of your loan. 2 1 You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund s sponsor has no legal obligation to provide financial support to money market funds and you should not expect that the sponsor will provide financial support to the fund at any time. 2 Loan repayments received during the blackout period will be invested in the Vanguard Federal Money Market Fund Investor Shares until the blackout period ends. At that time, loan repayments and any associated earnings will be posted to your account according to your investment elections on file with Fidelity. If you do not have any elections on file, your loan repayments and any associated earnings will be invested in the Vanguard Federal Money Market Fund Investor Shares. 2

5 Activity Calendar Please review this activity calendar to understand how your account may be affected during the transition period. If you have any questions, or if you would like to make any changes to your account at Xerox before the start of the blackout period, please go online to usbenefits.hess.com or call before the January 20 and 27 activity deadlines. KEY DATES 1 BEFORE JANUARY 20, 2017 JANUARY 20, 2017, BY 3 P.M. CT JANUARY 27, 2017, BY 3 P.M. CT JANUARY 31, 2017, 3 P.M. CT FEBRUARY 1, 2017 WEEK OF FEBRUARY 19, 2017 MARCH 2017 APRIL 2017 PLAN ACTIVITY/ACTION STEPS Return all necessary paperwork in order for Xerox to process a loan or distribution by January 27, 2017, at 3 p.m. CT. Please allow enough time to request, receive, complete, and return the paperwork to Xerox before this deadline. If you do not return paperwork in good order by this date, you will need to wait until after the blackout period has ended in February to make your request through Fidelity. Blackout Period begins. This is the last day at Xerox to: Check your account balance. Process a loan or distribution. Change your future contribution rate and how contributions will be invested. Reallocate your account balances. Enroll in the Savings Plan (if you are not already participating). Your account balances are valued at the close of the market. Your account balances as of January 31, 2017, are scheduled to transfer to Fidelity in-kind, meaning the investment options will not change and will be transferred directly to Fidelity. Blackout Period ends. The blackout period is expected to end during this week, and The Benefits Center will reopen for all plan services. You will be notified by Fidelity when the blackout period has ended. Current employees will receive an at work and printed notices will be mailed to former employees. To access your account, contact The Benefits Center: Current employees: usbenefits.hess.com or call Former employees: netbenefits.com or call Fidelity at Important Note: You will need to enter a beneficiary designation for your account. Beneficiary information currently on file with Xerox will not transfer to Fidelity. Final account statement from Xerox will be mailed to you. First quarterly statement from Fidelity is available online. Compare Fidelity s statement with your final account statement from Xerox. Contact Fidelity with any questions. Account statements for the Savings Plan are available online at netbenefits.com and will not be automatically mailed to your home. 1 The timing of the plan changes and transition period, including any asset reallocations, described within this brochure depends on a variety of factors, which may include: the timing and accuracy of the transfer of data, receipt of instructions, and receipt of assets. Changes in any of these factors may result in changes to the timing of the delivery of services, the transition period, and/ or the dates on which, and thus the prices at which, assets in your account are sold and/or reinvested. 3

6 Key Dates and Action Steps Here s a list of what you can do before the blackout period begins and after the transition to Fidelity is complete. Before the blackout period begins on January 20, 2017, at 3 p.m. CT (4 p.m. ET) Return all necessary paperwork to Xerox to process a loan or distribution. By January 27, 2017, at 3 p.m. CT (4 p.m. ET) Make any changes to your accounts at Xerox. Call The Benefits Center at , or go online to usbenefits.hess.com. When the blackout period ends during the week of February 19, 2017* Add your preferred address and elect edelivery. Enroll in the Savings Plan (if you are not already participating). Adjust your contribution amount. Access information about each Savings Plan investment option. Make changes to your investment elections. Enter your beneficiary information. (Beneficiary information currently on file with Xerox will not transfer to Fidelity.) Download the NetBenefits mobile app from the App Store, Google Play store, or Windows Store to access your account. *WHY ISN T THERE AN EXACT DATE FOR WHEN THE TRANSITION PERIOD WILL END? The effective date of plan changes and the end of the transition period depends on the accurate and timely transfer of data between Xerox, the current service provider, and Fidelity. By projecting completion within the week of February 19, we re allowing ample time for the information to be transferred, checked, and tested before the Savings Plan reopens for transactions. During this time, you can determine whether the blackout period has ended by calling Fidelity at You will be notified by Fidelity when the blackout period has ended. Current employees will receive an at work and printed notices will be mailed to former employees. Need Help? Current Employees usbenefits.hess.com or Log in to The Benefits Center using your Hess network credentials. Former Employees netbenefits.com or Click the Register link. Follow the instructions to set up your user name and password. If you have a user name and password for other accounts at Fidelity, you can use that information to access your Savings Plan information. 4

7 Investment Options Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. The investment options that are currently available through the Savings Plan will not be changing. Any balances and future contributions you have invested in these investment options as of January 31, 2017, will transfer to the same funds at Fidelity (this is called an in-kind transfer). Future contributions will continue to be invested in these funds during the transition. Once the blackout period has ended (expected to be during the week of February 19, 2017), you will have the ability to make changes to your investment elections. For information to help you decide how to invest your account balances in the Savings Plan, read Choose Your Route to Retirement. It s posted in the Resource Materials section of myhr and in the Resources section of HessBenefits.com. Information about all of the investments offered in the Savings Plan can be found on HessBenefits.com. You have the right to direct how your account balance is invested among the Savings Plan s investment options. For an explanation of your right to direct investments, any plan restrictions, and a description of the types of fees and expenses associated with your plan account, refer to the enclosed Participant Disclosure Notice. FUND NAME TICKER SYMBOL COMPANY STOCK Hess Corporation Common Stock Fund N/A INTERNATIONAL EQUITY William Blair International Small Cap Growth Fund Class Institutional Vanguard Developed Markets Index Fund Institutional Shares Lazard Emerging Markets Equity Portfolio Institutional Shares WIISX VTMNX LZEMX U.S. LARGE CAP EQUITY Laudus U.S. Large Cap Growth Fund Touchstone Value Fund Institutional Vanguard Institutional Index Fund Institutional Shares LGILX TVLIX VINIX U.S. MID CAP EQUITY Vanguard Mid-Cap Index Fund Institutional Shares VMCIX U.S. SMALL CAP EQUITY Vanguard Small-Cap Index Fund Institutional Shares Voya Small Company Fund Class R6 VSCIX ISMZX 5

8 FUND NAME TICKER SYMBOL FIXED INCOME Vanguard Total Bond Market Index Fund Institutional Shares Western Asset Core Plus Bond Fund Class IS Western Asset Inflation Indexed Plus Bond Fund Class IS VBTIX WAPSX WAFSX MONEY MARKET Vanguard Federal Money Market Fund Investor Shares VMFXX Target Date Funds DATE OF BIRTH FUND NAME TICKER SYMBOL TARGET RETIREMENT DATE 1/1/ /31/1937 T. Rowe Price Retirement Balanced Fund I Class TRPTX Retired before /1/ /31/1942 T. Rowe Price Retirement 2005 I Class TRPFX /1/ /31/1947 T. Rowe Price Retirement 2010 I Class TRPAX /1/ /31/1952 T. Rowe Price Retirement 2015 I Class TRFGX /1/ /31/1957 T. Rowe Price Retirement 2020 I Class TRBRX /1/ /31/1962 T. Rowe Price Retirement 2025 I Class TRPHX /1/ /31/1967 T. Rowe Price Retirement 2030 I Class TRPCX /1/ /31/1972 T. Rowe Price Retirement 2035 I Class TRPJX /1/ /31/1977 T. Rowe Price Retirement 2040 I Class TRPDX /1/ /31/1982 T. Rowe Price Retirement 2045 I Class TRPKX /1/ /31/1987 T. Rowe Price Retirement 2050 I Class TRPMX /1/ /31/1992 T. Rowe Price Retirement 2055 I Class TRPNX /1/ /31/2099 T. Rowe Price Retirement 2060 I Class TRPLX 2058 and later The T. Rowe Price Target Date Funds I Class are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach the target date. The investment risk of each T. Rowe Price Target Date Fund I Class changes over time as the fund s asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. 6

9 Tools and Resources Whether you re looking for investment education, you want to review your finances, or you re thinking about retirement, Fidelity can help you take your next steps with confidence. With robust online capabilities and experienced representatives within easy reach, you ll have support with your most important financial decisions. Online Workshops Get smarter about your finances. Attend an online educational workshop. netbenefits.fidelity.com/livewebmeetings Workshops are live and offered daily. Attend from any computer or mobile device. Learn about a variety of topics, including choosing investments, balancing financial goals, and preparing for retirement. One-on-One Planning Available on business days from 7:30 a.m. to 8 p.m. CT Fidelity representatives are available to help you create a savings strategy that works for you and your goals. Fidelity representatives are specially trained, have a detailed knowledge of your Savings Plan, and can assist with a range of needs, including: Choosing investments. Helping you understand how much money you ll need to save to retire and what your income may look like in retirement. Enrolling in the Savings Plan (if you aren t already participating). 7

10 Financial Wellness Is your financial picture everything it should be? Get your personal money checkup today. Fidelity.com/getmymoneycheckup You can also text fit * to to receive the link to the tool. Uncover your financial strengths and opportunities and the tips and tools to help you get to where you want to be. The money checkup is available to you now, and there is no account login required to use the tool. *When you text fit to , you will receive one text message from Fidelity. If you provide your address in your text, you may also receive up to one from Fidelity. Message and data rates may apply. Text help for help and stop to opt out. Visit pages.fidelityinvestments.com/smsee for additional information. Online Planning Tool netbenefits.fidelity.com/planningcenter Fidelity s online Planning & Guidance Center in NetBenefits makes it easier to plan for the future you envision. By answering just a few questions, you ll be able to: Estimate how much income you may have or need in retirement. Receive guidance to help you get or stay on track. Create a retirement plan in minutes. Unless otherwise noted, the tools and services described in this brochure will be available at the end of the transition period, which is scheduled for the week of February 19, Guidance provided by Fidelity through the Planning & Guidance Center is educational in nature, is not individualized, and is not intended to serve as the primary basis for your investment or tax-planning decisions. IMPORTANT: The projections or other information generated by Fidelity s Planning & Guidance Center Retirement Analysis regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. 8

11 Investing involves risk, including risk of loss. The Savings Plan is intended to be a participant-directed plan as described in Section 404(c) of ERISA, which means that fiduciaries of the plan are ordinarily relieved of liability for any losses that are the direct and necessary result of investment instructions given by a participant or beneficiary. Unless otherwise noted, transaction requests confirmed after the close of the market, normally 3 p.m. Central time, or on weekends or holidays will receive the next available closing prices. Requests received by Fidelity to sell units of a unitized stock fund before the close of the market will be processed at that day s closing price only if there is sufficient liquidity in the fund. If not, requests to sell units of the stock fund will be suspended. As liquidity is restored, suspended transactions will be processed, generally on a first-in, first-out basis, at the closing price for the processing date. Please contact Fidelity to learn if your request to sell units of your plan s unitized stock fund has been suspended. This document provides only a summary of the main features of the Hess Corporation Employees Savings Plan, and the plan document will govern in the event of any discrepancies. The trademarks and service marks appearing herein are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliated company, and may be registered. Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved