What is the story on this? Can anyone provide context? Why are pensioners so mad?
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UK based pensioners, often with decades of service building BP, have defined benefit pension funds held and ring-fenced from the Company assets. Incidentally, these benefits 'compensated' for relatively lower salary packages compared, for example, to the US employees. These funds are reserved by trust law solely for the benefit of the stakeholders. Payment increases above 5% are subject to assessment by the Trustees that they are affordable and sustainable but are also subject to approval by BP itself as the Company is liable to support the fund if it fell into shortfall. In recent years, despite clear assessment that enhanced payouts could be afforded, BP twice refused requests from the Trustees for such discretionary increases.
They are complaining that their pension is not keeping up with inflation. Guess what, pensioners? Neither is salary for people currently employed by bp. We are essentially taking a pay cut every year. Get in line behind working employees.
No sympathy really for the pensioners. They have an “I’m alright Jack” attitude and think they are so much better. Expecting people to feel sorry for them with a defined benefit pension. Maybe more people would care if they fought to keep it for a younger generation. Or didn’t hide the effects of climate change and leave it for the next generation to sort out and pay for it. Reality is they have plenty of money and are moaning because they have the time to do so.
Left BP in reinvent. Got 40 times my annual pension as a cash out to a SIPP. Set for life millions in the bank which I can invest however I want and pass on to my spouse and kids in full.
I’m actually with the company on this one. The rules of the pension scheme were inflation up to 5% - they are all upset that bp didn’t exercise their discretion to increase it above 5%. This is within the rules of the pension scheme.
It appears lost on them that current employees didn’t get a 5% raise nor have defined benefit pensions.
Are you referring to the British pensioners? In 2022, BP decided not to increase annual pension payments to account for inflation. The company's defined-benefit plan only increases pensions annually by up to 5%, which is less than half the rate of inflation in 2022. The British BP pensioners bombard all the FB and Instagram pages with their well worded arguments. BL was the CEO at the time, and whenever he made one of his swarmy presentations online, the pensioners would pile on with uncomplimentary comments. Apparently, he couldn't cope with being unpopular. The pensioners representatives requested a meeting with him, which was denied. I believe he told them to apply to some BP hardship fund. A lot of these people are in their seventies and older. They are the age group who knew how to do their job properly. They helped build the company.