Retirement
How does my pension work?
Taking care of you even after you retire
From the current benefits site; confirm for 2027. Last updated there 2026-08-05.
This page differs by plan. Open the one that applies to you; your plan documents say which.
Plan variant 1 · Benefit Accrual: Frozen Pre-2017 Benefit (If applicable) + Annual Pay Credit based on age and years of service + Annual Interest Credit (30-year Treasury Rate - no less than 2.65%)
- Pension benefit grows annually through pay and interest credits.
- Multiple payment options are available plus you may name a non-spousal beneficiary.
- The qualified lump sum payment option is rollover eligible.
- If you leave employment, your benefit continues to grow with interest credits annually until you start your benefit.
Benefit Accrual
Frozen Pre-2017 Benefit (If applicable) + Annual Pay Credit based on age and years of service + Annual Interest Credit (30-year Treasury Rate - no less than 2.65%) = Total qualified pension benefit due from Hormel Foods Corporation
Vesting
3 years
Mandatory Cashout, Cash Balance Portability, Pre-2017 Optional Lump Sum, Lump Sum, Single Life Annuity, 50% or 75% Joint and Survivor Annuity, Joint & 2/3 Survivor Annuity
Mandatory Cashout
If the total value of your benefit at the time of separation is under $7,000, we must pay the full value to you as a lump sum as soon as administratively possible. Please work with Hormel Foods Retiree Benefit Services to receive payment after your separation. If the total value is under $1,000, you will receive a check minus state/federal withholding if you do not respond to the letter and make an election. If the total value is $1,000 to $7,000, the benefit will be rolled over into an Individual Retirement Account (IRA) with our rollover provider if you do not respond to the letter and make an election.
Cash Balance Portability
When leaving employment, you may take your Cash Balance benefit with you. You may take an immediate lump sum as cash, or you may roll it into an IRA. If you prefer to leave the benefit in the plan, you may do so, and you will earn interest credits on the balance annually. Remember, the plan requires you to take the benefit by age 65.
Pre-2017 Optional Lump Sum
If the total value of your pre-2017 benefit (Traditional benefit) is less than $25,000 when you separate employment, it will be available to you as a lump sum when you retire. If the total value of your pre-2017 benefit (Traditional benefit) is over $25,000 when you separate employment, it is only available as an annuity when you retire.
Lump Sum
A one-time payment that pays the full value of your benefit to you. After the lump sum payment, there is no further benefit due to you.
Single Life Annuity
A monthly benefit paid to you for your lifetime. There is no survivor benefit due to a beneficiary.
50% or 75% Joint and Survivor Annuity
A monthly benefit paid to you for your lifetime, upon your passing your beneficiary will receive 50% or 75% of the benefit you were receiving. For example, if your benefit was $500 per month your beneficiary will receive $250 or $375 per month depending on which option you elected.
Joint & 2/3 Survivor Annuity
A monthly benefit paid to you for your lifetime. However, if your named beneficiary passes away before you, your monthly benefit will decrease. When you or your beneficiary pass away the survivor will receive 66 2/3% of the benefit. For example, if your benefit was $500 per month and your beneficiary passes away, your benefit will decrease to $333 per month. If you pass away before your beneficiary, they will receive $333 per month.
What are the first things I should do when I go out to Hormelfoodspension.com?
- Login as new user - Add spouse/beneficiary information - Choose your mailing preference
What does vesting mean?
Vesting is the amount of time you must work before you are entitled to a benefit. It is also called vesting service. You are vested in your benefit after 3 fiscal years (with at least 1000 hours each year). This means if you terminate employment after 3 fiscal years, you have a qualified pension benefit!
Does everyone have a pre-2017 benefit?
Only employees who were hired prior to 2017 have a benefit under the pre-2017 benefit formula known as the traditional formula. If you were hired before 2017, you still have this benefit, as it is not impacted by the updates introduced in 2023. This benefit will remain a source of retirement income (in addition to the updated cash balance pension benefit). If you retire or leave the company, you will have the opportunity to take this benefit as a lump sum if the total value is less than $25,000. If the value is over $25,000, this benefit will be disbursed in monthly payments when you reach retirement age.
How does the cash balance formula work?
Your benefit is earned through an annual pay credit and interest credit. Your pay credit is determined by a point system – based on combined age and years of recognized service. <50 pay credit is 4.5% and 50+ pay credit is 6%. You will also receive an annual interest credit – which is based on the 30-year Treasury rate. To offer more protection, we will guarantee a minimum interest rate of 2.65% – and you will benefit if the treasury rate increases above that.
How long do I have to wait to start my benefit?
For the pre-2017 formula (traditional), you must be at least 55 years old and separated from the company to begin your benefit. If you begin your benefit at age 55, it will be reduced because you are taking it prior to normal retirement age which is 65 and the benefit must pay out an additional 10 years. For the 2017 to present formula (cash balance), you may begin your benefit once you have separated from the company as an annuity or lump sum. In addition, you may roll the lump sum over to an Individual Retirement Account (IRA). If you do not take your benefit immediately or roll it into an IRA, it will remain in the plan and grow with interest each year until you begin the benefit.
When you say my benefit may be reduced, what does that mean?
For the pre-2017 formula (traditional), the formula is designed to encourage you to retire between age 60 and 65, therefore if you don’t wait, the benefit is reduced ~6% per year for every year prior to your unreduced date/age of 60, 62, or 65. The following service and age requirements allow you to start your pension benefit without a reduction (prior to age 65). - There is no reduction if you have at least 15 years of service and are age 62 or older when you want to begin your benefit. - There is no reduction if you have at least 30 years of service and are age 60 or older when you want to begin your benefit. For the 2017 to present formula (cash balance), there is no age requirement or reduction in the benefit for starting prior to 65.
Who do I contact if I have questions?
Contact Hormel Foods Retiree Benefit Services by calling 1-844-626-0619 or by going online at Hormelfoodspension.com . To ensure you receive timely communications, please verify that your address and mobile number are up to date in Oracle (Me > Contact Info).
Plan variant 2 · Benefit Accrual: Annual Pay Credit (4.5% of Pay) + Annual Interest Credit (30-year Treasury Rate - no less than 2.65%)
- Pension benefit grows annually through pay and interest credits.
- Multiple payment options are available plus you may name a non-spousal beneficiary.
- The qualified lump sum payment option is rollover eligible.
- If you leave employment, your benefit continues to grow with interest credits annually until you start your benefit.
Benefit Accrual
Annual Pay Credit (4.5% of Pay) + Annual Interest Credit (30-year Treasury Rate - no less than 2.65%) = Total qualified pension benefit due from Hormel Foods Corporation
Vesting
3 years
Mandatory Cashout, Cash Balance Portability, Lump Sum, Single Life Annuity, 50% or 75% Joint and Survivor Annuity, Joint & 2/3 Survivor Annuity
Mandatory Cashout
If the total value of your benefit at the time of separation is under $7,000, we must pay the full value to you as a lump sum as soon as administratively possible. Please work with Hormel Foods Retiree Benefit Services to receive payment after your separation. If the total value is under $1,000, you will receive a check minus state/federal withholding if you do not respond to the letter and make an election. If the total value is $1,000 to $7,000, the benefit will be rolled over into an Individual Retirement Account (IRA) with our rollover provider if you do not respond to the letter and make an election.
Cash Balance Portability
When leaving employment, you may take your Cash Balance benefit with you. You may take an immediate lump sum as cash, or you may roll it into a qualifying IRA. If you prefer to leave the benefit in the plan, you may do so, and you will earn interest credits on the balance annually. Remember, the plan requires you to take the benefit by age 65.
Lump Sum
A one-time payment that pays the full value of your benefit to you. After the lump sum payment, there is no further benefit due to you.
Single Life Annuity
A monthly benefit paid to you for your lifetime. There is no survivor benefit due to a beneficiary.
50% or 75% Joint and Survivor Annuity
A monthly benefit paid to you for your lifetime, upon your passing your beneficiary will receive 50% or 75% of the benefit you were receiving. For example, if your benefit was $500 per month your beneficiary will receive $250 or $375 per month depending on which option you elected.
Joint & 2/3 Survivor Annuity
A monthly benefit paid to you for your lifetime. However, if your named beneficiary passes away before you, your monthly benefit will decrease. When you or your beneficiary pass away the survivor will receive 66 2/3% of the benefit. For example, if your benefit was $500 per month and your beneficiary passes away, your benefit will decrease to $333 per month. If you pass away before your beneficiary, they will receive $333 per month.
What are the first things I should do when I go out to Hormelfoodspension.com?
Login as new user Add spouse/beneficiary information Choose your mailing preference
What does vesting mean?
Vesting is the amount of time you must work before you are entitled to a benefit. It is also called vesting service. You are vested in your benefit after 3 fiscal years (with at least 1000 hours each year). This means if you terminate employment after 3 fiscal years, you have a qualified pension benefit!
Does everyone have a pre-2017 benefit?
Only employees who were hired prior to 2017 have a benefit under the pre-2017 benefit formula known as the traditional formula. If you were hired before 2017, you still have this benefit, as it is not impacted by the updates introduced in 2023. This benefit will remain a source of retirement income (in addition to the updated cash balance pension benefit). If you retire or leave the company, you will have the opportunity to take this benefit as a lump sum if the total value is less than $25,000. If the value is over $25,000, this benefit will be disbursed in monthly payments when you reach retirement age.
How does the cash balance formula work?
Your benefit is earned through an annual pay credit and interest credit. You’ll receive a 4.5% pay credit and an interest credit based on the 30-year Treasury rate with a minimum guarantee of 2.65%. The interest credit could be more if the 30-year Treasury rate is higher.
How long do I have to wait to start my benefit?
You may begin your benefit once you have separated from the company, as an annuity or lump sum. In addition, you may roll the lump sum over to an Individual Retirement Account (IRA). If you do not take your benefit immediately or roll it into an IRA, it will remain in the plan and grow with interest each year until you begin the benefit.
Who do I contact if I have questions?
Contact Hormel Foods Retiree Benefit Services by calling 1-844-626-0619 or by going online at Hormelfoodspension.com To ensure you receive timely communications, please verify that your address and mobile number are up to date in Oracle (Me > Contact Info).
Plan variant 3 · Benefit Accrual: Years of Service x Coverage Schedule Rate + 30-Years Service (If applicable)
- Pension benefit grows based on your years of service.
- Multiple payment options are available
- You may begin your benefit at age 55 if separated from the company, but it may be reduced.
- 30 years of service qualifies you for additional perks and an unreduced benefit before age 65.
Benefit Accrual
Years of Service x Coverage Schedule Rate + 30-Years Service (If applicable) = Total qualified pension benefit due from Hormel Foods Corporation
Vesting
5 years
Mandatory Cashout, Lump Sum, Single Life Annuity, 50% or 75% Joint and Survivor Annuity, Joint & 2/3 Survivor Annuity
Mandatory Cashout
If the total value of your benefit at the time of separation is under $7,000, we must pay the full value to you as a lump sum as soon as administratively possible. Please work with Hormel Foods Retiree Benefit Services to receive payment after your separation. If the total value is under $1,000, you will receive a check minus state/federal withholding if you do not respond to the letter and make an election. If the total value is $1,000 to $7,000, the benefit will be rolled over into an Individual Retirement Account (IRA) with our rollover provider if you do not respond to the letter and make an election.
Lump Sum
A one-time payment that pays the full value of your benefit to you, only available if your total benefit amount is $7,000 or less. After the lump sum payment, there is no further benefit due to you.
Single Life Annuity
A monthly benefit paid to you for your lifetime. There is no survivor benefit due to a beneficiary.
50% or 75% Joint and Survivor Annuity
A monthly benefit paid to you for your lifetime, upon your passing your beneficiary will receive 50% or 75% of the benefit you were receiving. For example, if your benefit was $500 per month your beneficiary will receive $250 or $375 per month depending on which option you elected.
Joint & 2/3 Survivor Annuity
A monthly benefit paid to you for your lifetime. However, if your named beneficiary passes away before you, your monthly benefit will decrease. When you or your beneficiary pass away the survivor will receive 66 2/3% of the benefit. For example, if your benefit was $500 per month and your beneficiary passes away, your benefit will decrease to $333 per month. If you pass away before your beneficiary, they will receive $333 per month.
What are the first things I should do when I go out to Hormelfoodspension.com?
Login as new user Add spouse/beneficiary information Choose your mailing preference
What does vesting mean?
Vesting is the amount of time you must work before you are entitled to a benefit. It is also called vesting service. You are vested in your benefit after 5 years. This means if you terminate employment after 5 years, you have a qualified pension benefit!
How long do I have to wait to start my benefit?
If you do not have 30 years of service, you must be at least 55 years old and separated from the company to begin your benefit. If you begin your benefit at age 55, it will be reduced because you are taking it prior to normal retirement age which is 65 and the benefit must pay out an additional 10 years. If you have 30 years of service, you may begin your benefit at any age without a reduction once you have separated from the company.
When you say my benefit may be reduced, what does that mean?
If you do not have 30 years of service, the formula is designed to encourage you to retire at 65, therefore if you don’t wait, the benefit is reduced ~6% per year for every year prior to 65 or attainment of 30 years of service. If you have 30 years of service, there is no age requirement or reduction in the benefit for starting prior to 65. In addition, if you begin your benefit prior to age 62, you will receive an additional $100/month until you attain age 62.
Who do I contact if I have questions?
Contact Hormel Foods Retiree Benefit Services by calling 1-844-626-0619 or by going online at Hormelfoodspension.com To ensure you receive timely communications, please verify that your address and mobile number are up to date in Oracle (Me > Contact Info).
Plan variant 4 · Benefit Accrual: Years of Service x Coverage Schedule Rate + 30-Years Service (If applicable)
Benefit Accrual
Years of Service x Coverage Schedule Rate + 30-Years Service (If applicable) = Total qualified pension benefit due from Hormel Foods Corporation
Vesting
5 years
Mandatory Cashout, Pre-2017 Optional Lump Sum, Lump Sum, Single Life Annuity, 50% or 75% Joint and Survivor Annuity, Joint & 2/3 Survivor Annuity
Mandatory Cashout
If the total value of your benefit at the time of separation is under $7,000, we must pay the full value to you as a lump sum as soon as administratively possible. Please work with Hormel Foods Retiree Benefit Services to receive payment after your separation. If the total value is under $1,000, you will receive a check minus state/federal withholding if you do not respond to the letter and make an election. If the total value is $1,000 to $7,000, the benefit will be rolled over into an Individual Retirement Account (IRA) with our rollover provider if you do not respond to the letter and make an election.
Pre-2017 Optional Lump Sum
If the total value of your pre-2017 benefit (Traditional benefit) is less than $25,000 when you separate employment, it will be available to you as a lump sum when you retire. If the total value of your pre-2017 benefit (Traditional benefit) is over $25,000 when you separate employment, it is only available as an annuity when you retire.
Lump Sum
A one-time payment that pays the full value of your benefit to you, only available if your total benefit amount is $7,000 or less. After the lump sum payment, there is no further benefit due to you.
Single Life Annuity
A monthly benefit paid to you for your lifetime. There is no survivor benefit due to a beneficiary.
50% or 75% Joint and Survivor Annuity
A monthly benefit paid to you for your lifetime, upon your passing your beneficiary will receive 50% or 75% of the benefit you were receiving. For example, if your benefit was $500 per month your beneficiary will receive $250 or $375 per month depending on which option you elected.
Joint & 2/3 Survivor Annuity
A monthly benefit paid to you for your lifetime. However, if your named beneficiary passes away before you, your monthly benefit will decrease. When you or your beneficiary pass away the survivor will receive 66 2/3% of the benefit. For example, if your benefit was $500 per month and your beneficiary passes away, your benefit will decrease to $333 per month. If you pass away before your beneficiary, they will receive $333 per month.
What are the first things I should do when I go out to Hormelfoodspension.com?
Login as new user Add spouse/beneficiary information Choose your mailing preference
What does vesting mean?
Vesting is the amount of time you must work before you are entitled to a benefit. It is also called vesting service. You are vested in your benefit after 5 years. This means if you terminate employment after 5 years, you have a qualified pension benefit!
How long do I have to wait to start my benefit?
If you do not have 30 years of service, you must be at least 55 years old and separated from the company to begin your benefit. If you begin your benefit at age 55, it will be reduced because you are taking it prior to normal retirement age which is 65 and the benefit must pay out an additional 10 years. If you have 30 years of service, you may begin your benefit at any age without a reduction once you have separated from the company.
When you say my benefit may be reduced, what does that mean?
If you do not have 30 years of service, the formula is designed to encourage you to retire at 65, therefore if you don’t wait, the benefit is reduced ~6% per year for every year prior to 65 or attainment of 30 years of service. If you have 30 years of service, there is no age requirement or reduction in the benefit for starting prior to 65. In addition, if you begin your benefit prior to age 62, you will receive an additional $100/month until you attain age 62.
Who do I contact if I have questions?
Contact Hormel Foods Retiree Benefit Services by calling 1-844-626-0619 or by going online at Hormelfoodspension.com To ensure you receive timely communications, please verify that your address and mobile number are up to date in Oracle (Me > Contact Info).
Applies to every plan
Can I estimate my benefit before I decide to retire?
Yes, log in to the online pension calculator by visiting Hormelfoodspension.com . If this is your first time accessing the updated site, please call Hormel Foods Retiree Benefit Services at 1-844-626-0619 for assistance. You may also request a retirement guide, which includes helpful checklists and detailed information about the retirement process. Additionally, you can ask to schedule an appointment with a Retirement Specialist.
How do I begin my qualified pension benefit?
To begin your benefit(s), please call Hormel Foods Retiree Benefit Services at 1-844-626-0619 or log in online at Hormelfoodspension.com . In addition, either you or your HR team will need to enter your resignation in Oracle.
What is an annuity versus a lump sum?
An annuity is a guaranteed income stream paid monthly for your lifetime. In addition, you have an opportunity to elect a payment option that includes a lifetime income stream for a beneficiary upon your passing. A lump sum is a one-time payment made to you. Once the lump sum is paid, there are no further benefits due to you or a beneficiary.
Do I contribute to my qualified pension benefit?
You do not contribute to your pension benefit. Your pension is funded solely by Hormel Foods Corporation and all the financial risk is assumed by the company. Unlike a 401(k) benefit, you are not subject to market volatility.
When does my qualified pension benefit start accruing?
You start earning a benefit when you hire into a role that is eligible for a pension.
Is my qualified pension benefit guaranteed?
Hormel Foods Corporation is required to insure your qualified benefit with the Pension Benefit Guaranty Corporation (PBGC), a US government agency established to protect pension plans sponsored by private-sector employers. If Hormel Foods Corporation failed to pay your benefit, the PBGC will pay the benefit up to the maximum limits that are defined annually. For more information, visit PBGC Guarantee.
Contact Hormel Foods Retiree Benefit Services at 1-844-626-0619 or log into Hormelfoodspension.com