Hess UK Pension Plan - PRAG

Trustees’ Report
Plan2010
To the members of the
Hess UK Pension

Overview
Contents
2 Overview from the Trustees
6 How the Fund has Changed
over 2009
8 Investment Focus
10 Pension Q&A’s
12 Summary of the Plan
14 Summary Funding Statement
for 2010
16 Taxation of Pension Rights
18 Who’s Who
Welcome to the
Trustees’ summary
report for 2010 to
the members of the
Hess UK Pension
Plan. This is our
opportunity to
remind you of the
benefits that the
Plan provides, to
show you how the
Plan has developed
since our previous
report and to
update you with
what has been
happening in the
pensions world.
We hope you find
our report useful
and informative.
2 Trustees’ Report 2010

from the Trustees
Let’s start with a brief recap on the key
features of the Plan:
• The Company pays all the costs –
you do not have to pay any
contributions;
• The Plan provides final-salary benefits
which are not affected by day-to-day
movements in investment markets;
this means that you can predict the
level of benefit you’ll get and plan
your finances well in advance of
retirement;
John Carley
Eric Fishman
• Your family has the financial security
of a pension which is payable on your
death; also, if you die while working
for the Company, a tax free life
assurance sum is paid;
Lydia Latham
David Lutterbach
• If you leave service, you may transfer
the cash value of your pension to an
external scheme; alternatively, the
Plan will preserve your pension rights
until you retire;
• There is a cost-effective facility for you
to provide extra benefits by paying
additional voluntary contributions
(“AVCs”).
Nigel McKim
Tony Parmenter
Next, we would like to highlight the
following:
The Plan’s Investments
The Plan’s £200M investment portfolio
is set up to seek attractive returns over
the long term without running undue
risk. Although “uncertainty” will always
feature in investment markets, the last
two years have been exceptional by
any terms. As a welcome recovery after
the severe downturn in calendar year
2008, the Plan’s portfolio achieved a
strong investment return over 2009;
more detail about the investments is
given on pages 6 to 9.
David Peirson-Smith
Benj Sykes
Tax Relief on Pensions
The Government is cutting back tax
relief on pension rights. The first step
was an interim measure, covering the
2009/10 and 2010/11 tax years, which
only affected higher earners. However,
in October 2010, some details of the
tax regime to apply from 2011/12
onwards were announced. This new
tax treatment of pension rights will be
important for some members of the
Plan and so please do review the
summary on pages 16 and 17.
Trustees’ Report 2010 3

Overview from the
Trustees
continued
The Plan’s Funded Status
Following the actuarial valuation at
January 2009, we agreed with the
Company a funding schedule that is
aimed to have the Plan fully funded, on
the Scheme Funding basis, by the start
of 2014. Our latest Summary Funding
Statement with the results of the
January 2010 funding review is on
pages 14 and 15 of this report.
Company Covenant
We believe that the Plan is supported
by a strong Company covenant, which
in summary means that the Company
can support the level of funding
needed to provide the benefits. The
Company’s commitment to funding
the Plan properly is backed up by the
parent company guarantee provided
by Hess Corporation. As a standing
agenda item at each Trustees’
Meeting, we review up to date
financial assessments of Hess
Corporation’s financial performance
and outlook.
Inflation and Pension Increases
All pensions in payment are reviewed
annually but, because there was no rise
in inflation over the year to September
2009, no statutory increases were
made to pensions at January 2010.
Further, the Company confirmed that
it would not agree to provide any noncontractual
increases on that date.
Looking forward, the Government has
announced that the Consumer Prices
Index (“CPI”), rather than the RPI, will be
used for statutory increases in company
pension schemes such as the Plan.
Plan Governance
We have kept all the Plan’s operations
under close review through detailed
quarterly reports from our accountant,
actuary, administrator, and investment
consultant. In addition, our Investment
Sub-Committee has been meeting
monthly to review investment
performance, assess proposed
changes to the portfolio and deal
with routine operational matters.
Trustee Board
Benj Sykes resigned as a Trustee at the
end of 2010. Benj had been the longest
serving Trustee and we thank him for
his substantial contribution to the work
of the Trustees over the years. The
Company has appointed Barbara Wilton
to become a Trustee with effect from
1 December 2010.
Audited Accounts
You should note that this report
contains only an extract from the
audited statutory accounts for 2009
in which the auditor’s opinions on
the financial statements and on the
summary of contributions were
unqualified. Our formal report
containing the Plan’s full audited
accounts and other technical
details is available on request to:
Trustees of the Hess UK Pension Plan,
c/o Hess Services UK Limited,
The Adelphi Building,
1-11 John Adam Street,
London WC2N 6AG
or by email to:
PensionPlan@hess.com
4 Trustees’ Report 2010

We would like to hear what you think about the Plan so please feel free to
give your comments and suggestions to any of the Trustees or by email to:
PensionPlan@hess.com
John Carley
Eric Fishman
Lydia Latham
D G Lutterbach
Nigel McKim
Tony Parmenter
David Peirson-Smith
Benj Sykes
Trustees’ Report 2010 5

How the Fund has
changed over 2009
Fund value including AVCs
£133,631,000 1 January 2009
Into the Fund was paid
Employer contributions 25,197,000
Members’ AVCs 755,000
Transfers from other plans 161,000
Investment income 404,000
Total 26,517,000
Out of the Fund was paid
Benefits to members 2,898,000
Transfers to other plans 497,000
Life assurance premium 485,000
Total 3,880,000
The market value of the investments increased by
£27,694,000
Fund value
£183,962,000 31 December 2009
Membership of the Plan
End of year
133
Start of year
121
380
389
1,116
1,099
Current employees Deferred members Pensioners and dependants
6 Trustees’ Report 2010

Trustees’ Report 2010 7

Investment
Fund Growth since 1985
£m
190
180
170
160
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
In September 2008, the collapse
of Lehman Brothers triggered
governments around the world to
intervene dramatically in markets
to restore confidence in the global
financial system and, at this stage,
the full outcome of the banking crisis
and the effectiveness of the remedial
measures being taken are still
unclear. However, investment markets
have started to stabilise and the
Plan’s investment gains in 2009 went
some way towards compensating for
the massive downturn experienced
in 2008. These two years show how
investment markets can fluctuate
dramatically in the short term; overall,
the Plan’s investments returned
18.5% in 2009 compared with a return
of minus 23.4% in 2008. And yet, the
investment return on the portfolio
over the first 3 quarters of 2010 has
only been modest and the outlook
remains volatile.
This volatility of investment markets is
perhaps best illustrated by the section
of the portfolio where, via an Emerging
Markets equity fund, the Plan invests
in shares of companies operating in
countries such as Brazil, China, India,
Korea and Russia. Relative to investing
in the UK equity market, this sector is
projected to provide a higher rate of
Total number of
current active
members
return over the long term but with
returns that are likely to vary more
widely. The chart below shows the
US$ returns achieved each month of
the Emerging Markets equity fund
since the start of 2008.
US$ Returns of Emerging markets
equity fund (31 Jan 2008 to 30 Sep 2010)
% Return (US$)
20
15
10
5
0
-5
-10
-15
-20
-25
-30
31 Jan 08
31 Mar 08
30 Jun 08
30 Sep 08
31 Dec 08
31 Jan 09
31 Mar 09
30 Jun 09
30 Sep 09
31 Dec 09
Number of employees
Fund value
(including AVCs)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
900
800
700
600
500
400
300
200
100
31 Jan 10
31 Mar 10
30 Jun 10
30 Sep 10
Looking backwards in time, it would of
course have been fantastic for the Plan
to have been invested in this sector
for purely the quarters which showed
positive returns. However, no investor has
the benefit of hindsight and instead we
have to construct a portfolio that aims
to strike a reasonable balance between
achieving gains in rising markets and
avoiding losses in adverse times.
0
8 Trustees’ Report 2010

Focus
Target Asset Allocation
% Returns (+/-)
Actual
Returns
Benchmark
Returns
Calendar 2009 18.5% 15.8%
ENTIRE PORTFOLIO
Q1:Q3 2010 5.8% 4.8%
0 5 10 15 20
Global Equities 37%
Hedge Funds 24%
Bonds 12%
Venture Capital
& Private Equity 10%
Real Assets 10%
Emerging Market
Equities 5%
Cash 2%
The importance of “not
putting all the eggs in one
basket” lead us to develop,
with the advice of the Plan’s
investment consultants, our
diversified asset strategy for
the portfolio which is shown
in the chart above. You will
see that the proportion of
the Plan’s assets that is
invested in Emerging Market
equities represents only 5%
of the entire portfolio.
We track the performance of
the investment managers
within each of the sectors
by comparing the returns
actually achieved with
benchmarks based on how
the underlying markets have
performed. Where any of
our managers underperform
for a sustained period,
we and our investment
consultants research the
reasons why this has
occurred and judge whether
this should be treated as
purely a temporary reversal
or whether – perhaps
because of changes in
personnel – the manager
should be replaced.
0 10 20 30 40
0 30 60 90 120 150
0 5 10 15 20 25 30 35
0 10 20 30 40 50
-5 0 5 10 15 20
% Returns (+/-)
Calendar 2009 18.3% 20.7%
Global Market equities
Q1:Q3 2010 5.5% 3.3%
Calendar 2009 69.0% 59.4%
Emerging Market equities
Q1:Q3 2010 19.3% 13.8%
Calendar 2009 19.7% 13.1%
Hedge Funds
Q1:Q3 2010 3.7% 4.6%
Calendar 2009 25.6% 22.5%
Real Assets
Q1:Q3 2010 9.3% 9.4%
Calendar 2009 -2.2% -2.0%
Bonds
Q1:Q3 2010 9.5% 9.5%
The charts above show the actual investment
returns and benchmark returns on the main asset
classes within the portfolio; you should note that
these returns allow for the currency hedging process
that we have put in place. No figures are shown for
the Venture Capital/Private Equity component as our
investments into these funds are being established
on a gradually phased basis and short term
indicators/returns for these asset classes are
meaningless.
In summary, we are keeping all of our managers
under close review and continue to believe that the
current diversified portfolio remains appropriate for
the Plan. We will keep you updated in future reports.
Trustees’ Report 2010 9

Pension Q&A’s
Some of us may remember the old days when the subject of “pensions” was rarely
mentioned in the media but life is very different now. Here are some pointers
through the pensions maze:
How are the Company’s contributions to the Plan worked out?
The Trustees commission regular actuarial valuations of the Plan’s assets and
liabilities. Based on these valuations, the Trustees will agree with the Company how
much should be contributed. The amount of the Company’s contributions may go
up or go down following such actuarial valuations.
How does increasing life expectancy affect the Plan?
All the evidence indicates that people born more recently tend to live longer. According
to a recent study, once men born in 1980 reach age 60, they are expected to live on
average for another 33 years whereas men reaching age 60 this year (i.e. born in 1950)
are expected to survive for an average of 29 years. Please note that these are merely
averages, some people will live for longer and others for less. Allowing for increased life
expectancy makes pension plans more expensive simply because the pensions are
likely to be paid for a longer period. Very roughly, each extra year of life expectancy that
we assume for the Plan’s membership will add a further £5 million to the amount
needed to support the pension rights that have already been earned.
How can the Plan afford to pay out the “death in service” benefits?
The cash value of the life assurance lump sums and dependant’s pensions that
would be paid if every in-service member of the Plan died is around £280 million!
At first sight, there might appear to be a problem because this is considerably more
than the £200 million currently held by the Plan. However, there are no grounds for
concern because the Plan does not rely on its own resources to pay the death in
service benefits; instead, these benefits are insured and so the sums paid out by
the Plan are reclaimed from the insurer.
This explains why the Plan restricts a member’s death in service benefits to the level
for which insurance cover has been secured; only very few members have any such
restriction and each is individually informed.
10 Trustees’ Report 2010

While on the subject of life assurance … please remember to update your
Beneficiary Nomination Form if your personal circumstances change. In the event
of a member’s death, the Trustees would use this form to help decide who should
be paid the benefits. You can get a new form for this purpose from your local
Human Resources department.
What would happen if the Plan were wound-up?
The Company would have to pay into the Plan enough money to enable all
members’ accrued benefits to be completely secured with an insurance
company. If the Company did not have enough money to do this then the Parent
Company Guarantee provided by Hess Corporation would be activated. Only if
Hess Corporation was unable to pay in the extra funding would members receive
less than their accrued benefits. At the extreme, the Pension Protection Fund
(“PPF”) might be able to take over the Plan and pay compensation to members.
For more information, visit the PPF’s website at
www.pensionprotectionfund.org.uk.
What happens if I leave Hess?
Provided you’ve completed at least two years’ membership, the pension that you
have earned up to when you leave will remain in the Plan until you choose to
have it paid – at any age between 60 and 65. After leaving, the pension will be
increased each year to help maintain its real value. Alternatively, you can choose
to have the cash value of your pension paid over to another approved pension
arrangement – this could be a personal pension or the pension scheme of your
new employer.
Everyone who leaves Hess is promptly sent full details of their preserved pension
rights; all the Trustees ask of you is to keep the Plan’s administrators informed of
any change to your address.
Why does the Plan invest in Hedge Funds?
Around a quarter of the Plan’s portfolio is invested in hedge funds and so they
have an important role in the Trustees’ overall investment strategy. The first point
to emphasise is that there is a very wide variety of Hedge Funds and that the
specific funds used by the Hess Plan are all at the cautious end of the range;
further, very detailed due diligence is carried out by the Trustees’ investment
consultants and lawyer before any new Hedge Fund manager is selected. The
main aim of investing in Hedge Funds is to increase the diversification of the
Plan’s portfolio because these funds can still provide a relatively good return
when equity markets generally are falling.
Can my Hess pension be shared on divorce?
Yes. Couples can divide between themselves the pension rights that they have
earned up to the time of the divorce. Pensions are divided by means of a formal
“pension sharing order” or, more usually in Scotland, by a negotiated agreement
between the parties. When a pension entitlement in the Hess Plan is shared, part
of the value of the member’s pension is transferred to an external pension
arrangement for the benefit of the ex-spouse. A briefing note with full details
about how the Plan operates pension sharing is available on request from the
Plan’s administrator.
Trustees’ Report 2010 11

Summary of
The Hess UK Pension Plan is non-contributory
in that the Company, Hess Services UK
Limited, bears the whole cost. The Company’s
level of contribution is likely to vary from time
to time following actuarial assessments of the
Plan’s financial status.
Your Normal Retirement Date (“NRD”) is
65 but members also have the flexibility
to retire at any age between 60 and 65.
When you retire, your retirement benefits
will come from three sources:
1. Hess UK Pension Plan
Your pension will be paid monthly in
advance and is based on 1.85% of
your Final Pensionable Salary multiplied
by the number of completed years and
months of pensionable service. When
you retire, you may elect to exchange
part of your pension for a cash sum
(currently tax-free). Your pension for
service after April 1997 will be
increased each year at the rate of price
inflation capped at 5.0% for 1997/2005
benefits and at 2.5% for post April
2005 benefits; further discretionary
increases may also be paid. Provisions
are also in place to compensate
spouses/partners and children
following the death of a pensioner.
2. Basic State Pension Scheme
As at April 2010, the Basic State
Pension was £5,078 per annum for a
single person and £8,120 per annum
for a married couple.
3. State Second Pension
(“S2P”, previously known as SERPS)
You should note that the Plan as a
whole contracted out of S2P on
1 January 2001. As a result, with effect
from then, members pay a reduced rate
of National Insurance contribution and
will earn no further benefits under S2P.
However, you will retain the right to any
S2P pension that you earned prior to
being contracted out.
The Hess UK Pension Plan also
provides the following benefits:
Early retirement
With the Company’s consent, you may
retire between the age of 55 and 60
provided you have completed ten years’
service. In this event, a reduction to your
pension will be made to allow for early
payment.
Death in service
If you die whilst a member of the Plan,
a tax-free lump sum of 2.5 times your
pensionable salary will be paid. In
addition your spouse or nominated
dependant will receive a pension of
50% of your prospective pension. If you
have children under the age of 18 (or
21 if in full-time education), a proportion
of your prospective pension will be paid
until they attain that age: 20% for one
child and 10% each for the next three
children. These figures will be doubled
if no spouse’s or dependant’s pension
is payable.
Transfers-in
You are permitted to transfer any
pension rights from previous pension
arrangements into the Plan. An actuarial
assessment will advise you of the
options available.
Leaving service
If you leave the Plan before your NRD
having completed more than two years’
service you may either transfer your
pension value to an alternative pension
scheme, or receive a deferred pension.
The deferred pension will be revalued
each year between the date of leaving
service and your NRD at the rate of
price inflation capped at 5.0% for
benefits earned before April 2009
and at 2.5% for benefits earned after
April 2009.
12 Trustees’ Report 2010

the Plan
Benefit limits
All payments from the Plan are subject
to HMRC regulations; benefits paid on
death in service are restricted to the
level for which insurance cover has
been secured.
Please refer to the Pension Plan Guide
for further details. This can be obtained
from HR in London.
Trustees’ Report 2010 13

Summary Funding State
One of our most important tasks as Trustees
is to monitor whether the Plan remains
financially strong enough to pay all the
members’ benefits – not just the pensions
that are currently in payment but all the
pensions that will become payable in the
future as members come to retire.
In line with legislation, we monitor the
Plan’s financial position through regular
actuarial valuations of the Plan’s assets
and liabilities. Full valuations are carried
out every three years and we also
receive annual updating reports from
our actuary. Each year, we provide
members with a summary of the Plan’s
funding position and this year’s is set
out below.
On-going Basis
When assessing the Plan’s finances on
an on-going basis, we assume that the
Plan will continue into the future with
the Company remaining willing and
able to provide full financial support.
Taking account of the Pension
Regulator’s Code of Practice and
advice from our actuary, we are
responsible for setting the assumptions
used to value the Plan’s liabilities
and these are documented in our
Statement of Funding Principles.
liabilities) of 67%. We agreed with the
Company a Recovery Plan to address
this shortfall which involves the
Company paying in £72.6 million over
the period to January 2014. These
recovery payments will be reviewed in
the light of further actuarial valuations.
The actuary’s updating report at
1 January 2010 showed that the shortfall
had reduced from £65.2 million to
£21.3 million, before including the
recovery payment of £14.7 million paid
by the Company later in January 2010.
The improvement to the Plan’s funding
position was principally due to the
significant amount contributed by the
Company and good investment
performance of the Plan’s portfolio.
The most recent full actuarial valuation
of the Plan at 1 January 2009 showed
that the assets were £133.6 million
and that the amount needed to provide
members’ accrued benefits was
£198.8 million. Accordingly, the Plan
had a shortfall of £65.2 million and a
funded status (ratio of assets to
Solvency Buy-Out Basis
Another approach to assessing the
Plan’s financial position is to test
whether the Plan has enough money
for an insurance company to take over
responsibility for all the benefits that
members have earned to date. The
latest estimate by the actuary is that
14 Trustees’ Report 2010

ment for 2010
becoming available under the Parent
Company Guarantee. We have no
reason to regard the winding up of
the Plan as a likely event and this
information is provided solely for
regulatory purposes.
Importance of the Company’s
support
Our objective is to have enough assets
in the Plan to enable all benefits to be
paid to members. To meet this objective,
the Plan relies on the Company’s
continued support because (i) the
Company is paying for benefits earned
by employed members each year and
(ii) the funding level can fluctuate from
time to time and, when there is a
funding shortfall, the Company is likely
to have to increase its contribution. The
commitment of the Company to funding
the Plan properly is backed up by the
Parent Company Guarantee provided
by Hess Corporation.
And to note …
There is a statutory requirement for us
to confirm to the membership whether
any sums have been paid by the Plan
to the Company; we are pleased to
confirm that no such payments have
been made.
the Plan had
a funded status on this
basis of 41% at 1 January 2009.
This level of cover may seem low but it
is not unusual amongst UK pension
plans; this is because buying-out
benefits is more expensive than
providing pensions directly from the
Plan. Importantly, this figure is only
relevant if the Plan were wound up with
the Company being unable to meet the
shortfall and with no extra funding
If you would like more information
about the actuarial valuation then
please contact our pension advisors:
Bluefin at 9 Greyfriars Road, Reading,
Berkshire RG1 1NU or by email to:
Robert.Hart@Bluefingroup.co.uk
Trustees’ Report 2010 15

Taxation of
Pension Rights
The basic principles of how the
Government taxes the benefits
provided by company pension
schemes such as the Plan have
remained the same for many years
and are relatively straightforward:
• Pensions in payment are taxed as
earned income.
• Provided the amounts are not
“excessive”, lump sums on death
or retirement are paid tax-free.
Private Medical scheme counts
as a “benefit in kind” on which
you have to pay tax but you are
not taxed on any actual payouts
made from that scheme to the
healthcare provider.
The rules about what counts as
“excessive” pension benefits are
based on two separate “Allowances”:
• There is an Annual Allowance (“AA”) for
the maximum amount of “new pension
rights” which is allowable tax-free in any
one year. For members of the Plan, “new
pension rights” are the total of:
• The cash value of the extra pension
earned in the Hess Plan, and;
• Any contributions you pay by way of
AVCs or to an individual pension policy.
• Again, provided the
amounts are not “excessive”,
pension rights can be built up over
your working life without any tax charge
– this includes giving full tax relief to
AVCs paid by members.
In overview, the benefits are taxed once
they come into payment but, subject
to upper limits, there is no tax paid on
the value of pension rights as they are
built up. There is a clear contrast here
between pensions and, say, the Private
Medical scheme provided by the
Company; each year’s cost of the
If the value of your new pension rights in
any tax-year is over the AA then you have
to pay a tax on the excess.
• There is a Life Time Allowance (“LTA”)
for the maximum pension value that
can benefit from tax relief. This is tested
when you come to retire and if the value
of your benefits is greater than the LTA
then you’ll have a tax charge to pay.
Initially, these allowances were set at
such generous levels that few members
were affected. However, the Government
has decided that too much tax relief is
being given to pensions and announced
in October 2010 that these allowances
16 Trustees’ Report 2010

would be reduced from 2011/12, very substantially so for the Annual Allowance. As a
caution though, you should note that there are a number of important areas where,
as of the date of this report, we are waiting for further details to be published.
Build-Up of Pension Rights
The starting point is that from 2011/12 everyone will have full tax relief on new
pension rights up to an Annual Allowance of £50,000 in each tax year, significantly
less than the £255,000 that applies for 2010/11.
For members of the Plan, the value of their new pension rights in 2011/12 is worked
out as in the following example:
A) How much pension have you
earned at 6 April 2011?
B) How much pension have you
earned at 5 April 2012?
Years of service
Pensionable salary
10 years
£60,000 pa
Years of service
Pensionable salary
11 years
£65,000 pa
Start Year Pension
is 10 x £60,000 x 1.85% = £11,100 pa
End Year Pension
is 11 x £65,000 x 1.85% = £13,228 pa
Suppose inflation over 2011/12 is 3% then adjust your Start Year Pension for inflation
£11,100 x 1.03 = £11,433 pa
Take your
End Year Pension £13,228 pa
Take off your Adjusted
Start Year Pension £11,433 pa
Giving a
Growth in Pension
of £1,795 pa
C) New Pension Rights
multiply your growth in pension
by 16 to get £28,720
To get the value of your new pension rights, multiply your growth in pension by
16 to get £28,720. Since this is below the £50,000 allowance, you will have no tax
charge; also you would have scope to pay AVCs of up to £21,280 (taking the total
up to £50,000) and get full tax relief on these contributions.
If you do these sums with your own personal details and get above £50,000 as the
value of your new pension rights, you might still not have any tax to pay because
any unused allowance from the 3 previous years can be carried forward.
To help you out with the calculations, we will continue to provide all in-service
members with Annual Allowance statements – as we have already been doing
to date.
Maximum Value at Retirement
To get the value of your retirement benefits, multiply your pension by 20 and add on
any cash sum you’ll be taking. If this value is below the Life Time Allowance then
you will have no tax charge. The amount of this allowance is £1.8 million for 2010/11
and 2011/12 but will reduce to £1.5 million for 2012/13. However, the Government
has announced that protective measures will be available to individuals who have
already accrued substantial pension rights.
Further information about these new tax rules will be issued once the final details
have been confirmed.
Trustees’ Report 2010 17

Who’s Who
The Trustees
The Trustees of the Plan during 2009
were:
Date of Appointment
J A Carley (MNT) 1 February 2007
E S Fishman 1 September 2008
L P Latham 1 April 2008
D G Lutterbach 1 March 2006
N B McKim (MNT) 1 January 2009
A E Newman (MNT) 1 February 2007
(resigned 1 December 2009)
A Parmenter (MNT) 1 January 2009
D M Peirson-Smith 1 November 2009
B J Sykes 20 November 2003
R E Thompson 20 November 2003
(resigned 1 November 2009)
The Member Nominated Trustees
(“MNTs”) at the end of 2009 were J A
Carley, N B McKim and A Parmenter.
Apart from reimbursement of expenses,
the Trustees do not receive any
remuneration for their work on the Plan.
Professional advisers
The Trustees retain professional
advisers to help them run the Plan.
They are as follows:
Administrator and actuary
Bluefin
9 Greyfriars Road, Reading,
Berkshire RG1 1NU
Handle the administration of the
Plan, e.g. transfers-in/out, benefit
calculations. Carry out annual actuarial
valuations to check the Plan has
sufficient assets to meet the costs of
the benefits and to advise on the level
of contributions which HSUKL needs to
pay. Provide specialist advice on all
pension matters.
Solicitor
Farrer & Co.
66 Lincoln’s Inn Fields,
London WC2A 3LH
Provide specialist advice and
assist with the legal requirements/
documentation of the Plan,
e.g. Trust Deed and Rules.
AVC provider
Skandia Life Assurance Company
Limited
Skandia House, Portland Terrace,
Southampton SO14 7EJ
Operate the in-house AVC facility and
invest the AVCs paid by members in a
range of managed funds.
Accountant
Kelvin Archer Limited
Cob Suite, Old Swan House,
29 High Street, Hemel Hempstead,
Herts HP1 3AA
Prepare annual accounts of the Plan.
Auditor
Ernst & Young LLP
Apex Plaza, Reading, Berkshire
RG1 1YE
Carry out the annual audit of the Plan
and ensure the accounts comply with
statutory requirements.
Investment consultant
Cambridge Associates Limited
Cardinal Place, 80 Victoria Street,
London SW1E 5JL
Advise the Trustees on investment
strategy and investment manager
selection/monitoring; provide regular
analyses of investment performance.
Further information
Please contact:
Trustees of the Hess UK Pension Plan,
c/o Hess Services UK Limited,
The Adelphi Building,
1-11 John Adam Street,
London WC2N 6AG
or by email to:
PensionPlan@hess.com
18 Trustees’ Report 2010

Hess Services UK Limited
Level 9
The Adelphi Building
1-11 John Adam Street
London WC2N 6AG
Tel: 020 7331 3000
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