Hess Corp., New York, purchased a group annuity contract from Massachusetts Mutual Life Insurance Co. to transfer $270 million in U.S. pension plan liabilities..
The oil and gas exploration and production company paid a $250 million premium for the contract to transfer assets from the Hess Corp. Employees’ Pension Plan, spokeswoman Lorrie Hecker confirmed in an email.
MassMutual began paying benefits for the retirees whose liabilities were transferred on Nov. 1, Ms. Hecker said.
As of Dec. 31, the Hess Corp. Employees' Pension Plan had $1.9 billion in assets, according to the company's most recent Form 5500 filing. Hess Corp.'s total pension plan assets were $2.568 billion, while projected benefit obligations totaled $2.492 billion, for a funding ratio of 103%, according to the company's most recent 10-K filing.