BP Amoco PLC
4 November 1999
BP AMOCO GIVES MAJOR BOOST TO UK PENSION
BP Amoco today announced a change to its pension rules which will
significantly boost the incomes of many of its UK retirees.
From May 1, 2000, the company will no longer take account of the basic state
pension when calculating retirement benefits from the BP Pension Fund.
The rule change, which is subject to the approval of the BP Pension Fund
Trustee Board, will apply not only to future retirees but also to most of the
35,000 existing pensioners and dependants in more than 30 UK schemes operated
under the BP Pension Fund.
The change also means that where UK pensioners have already had the basic
state pension taken into account, their pensions will be recalculated and the
increase paid from next May.
Incorporating the state pension, known as 'integration', is a normal
convention for large 'defined benefit' occupational pension schemes in the UK.
The decision to discontinue the practice will make the BP Pension Fund one of
the first to fully sever the link with state benefits.
BP Amoco said the capital cost of the change would be some £600 million -
expected to be met from the current surplus in the BP Pension Fund.
BP Amoco chief executive Sir John Browne said: 'While the BP Pension Fund
already guarantees inflation proof pension increases of up to five per cent
each year, the board has decided that the well-resourced position of the BP
Pension Fund and the financial strength of BP Amoco can support this
additional improvement. It will give a significant boost to the incomes of
many of our pensioners, enabling them to share in the ongoing success of the
company.'
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.