Discussions on the rights to company pensions are typically between regulators, employers and trustees. Those for whom the pension schemes are for, are seldom heard. But at BP (and Shell) members drawing pensions or about to, have made it their business to assert themselves in the conversation.
They are not publicised in the pension press or invited to trade conferences, but their arguments are strong and should be heard by other pension schemes that are in surplus. Here is the latest argument by the BP pensioner group. It is getting wider reporting (see the bottom of this update) but not by the pensions industry.
Why was the BP Pensioner Group formed?
As far back as 1992, BP assured their UK pension scheme members that, unless the company was in financial distress, their future pension increases would be raised in line with the cost of living.
In 2022 the BP Pension Trustees decided not to ask BP for a discretionary increase to help pensioners with a large rise in the cost of living. BP had told the Trustees that such a request would have been declined.
In 2023 the Trustees informed pensioners that they had asked BP’s consent for a 4% discretionary pension increase, which they viewed as appropriate; however BP did not support the Trustees recommendation.
The result is that since 2022 members of the BP Pension Fund have lost 11% in the value of their UK pensions at a time when BP is making record profits.
On the 18 April 2023 a BP Pensioner Group was formed, to campaign for the objectives described below.
Learn more about the BP Pension Dispute?
The BP Pension Dispute
Watch a 90 second summary.
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BP Pensioner Group Objectives
- BP and the Trustee to restore the real value of the pension to the level of May 2021 with a 11% increase.
- BP and the Trustee to honour the 1992 policy of increasing pensions in line with the cost of living wherever possible provided the Fund has sufficient resources to do so.
- a) All existing discretionary benefits to be preserved on partial or total buy-out, including the commitment to increase pensions in line with the cost of living.
(b) Fund governance to be improved to provide more pensioner input and eliminate sponsor conflicts of interest. - Any surplus assets left after completion of a buy-out to be distributed between member beneficiaries and bp on a fair and equitable basis.
Objectives updated 11 May 2024
Latest News & Information
Pensions Ombudsman Complaint Submitted by the BP Pensioner Group – (27/04/2025)
The BP Pensioner Group (BPPG) has submitted a detailed complaint – supported by extensive evidence – to the Pensions Ombudsman regarding BP and the BP Pension Fund Trustees. BP can no longer assert the ‘pension matter is closed’.
BP Pension Dispute: Time for Scrutiny by a Court or Ombudsman – (28/10/2024)
After 18 months of trying to engage BP and the Trustee in a meaningful dialogue, our campaign is forced reluctantly to seek to have matters determined either in a court or by the Pension Ombudsman. The Pension Increase Policy will be just one of several of these…
The Battle to Come over Companies Pensions Billions (25/04/2024)
The Times has published an article which looks at how companies have their eye on £359 billion pension fund surpluses. The article can be viewed by clicking here. An emerging national scandal with BP providing the blueprint?
Latest Media Statements
House of Commons Pensions Debate Criticises BP – (03/05/2024)
“Moral bankruptcy” at the heart of company’s approach to pensioners In a Parliamentary debate on UK pensions in the House of Commons on 2 May 2024, Alistair Carmichael, Liberal Democrat MP (Orkney & Shetland) told the House there appeared to be a “moral…
Pensioner group calls on Government to protect UK’s 9 million defined benefit pensioners from raids on fund surpluses – (19/04/2024)
“Easing controls on surplus extraction should only be considered alongside new measures that protect pension fund members”. The BP Pensioner Group (BPPG) has called for more measures to protect 9 million members of UK Defined Benefit (DB) pension funds, replying to…
BP Pensioner Group Welcomes Parliament Select Committee Report on UK Defined Benefit Pensions – (26/03/2024)
“The report resets the UK pension debate – by reminding employers and trustees that the interests of pension scheme members are paramount.” The BP Pensioner Group – representing 2,800 members of the BP Defined Benefit Pension Scheme – strongly welcomed the findings of…
Thanks to Alex Kent and his colleagues for running these newsletters, the Linked in Pension Group and for inspiring so many pensioners in your scheme and in others, to speak up for pensioners
