03 June 2009
BP has announced that it will be closing its final salary
pension scheme to new members from April 2010, offering new workers
a defined contribution scheme in its place. Existing members will
continue to build up benefits in the final salary pension scheme
and will not be affected by this change.
While the scheme is relatively well funded, with last year's
accounts revealing a surplus on an accounting basis of £1.58bn, the
move is reported to be part of a wider drive by Chief Executive
Tony Hayward to reduce overheads.
The cost of funding BP's pension obligations rose from $246m in
the first quarter of 2008 to $368m in the same period this
year.
