The BP Pension Scheme’s guaranteed increases have been among the highest provided by UK private sector company pension schemes and it remains a strong scheme to be part of.
This year, pensions in payment will receive an increase of 3.5% in line with the December 2024 RPI.
The Trustee of the BP Pension Fund requested that bp consent to an additional discretionary increase of 3%, which would have made a total increase of 6.5% when added to the 3.5% guaranteed increase under the relevant Trust Deed and Rules.
bp considered the Trustee’s request carefully. After considering a wide range of factors relevant to this decision, bp decided not to consent to the additional discretionary increase. The economic impact for bp of a discretionary increase comes at a time when bp has reset its strategy and introduced significant cost reduction programmes to improve financial performance.
Members of the scheme received annual increases of 5% in 2022, 2023 and 2024, the maximum increase guaranteed as set out in the terms of the Trust Deed and Rules.
In the past 10 years, bp pensions have increased cumulatively by more than the increase in the consumer price index (CPI), which is used by the government to calculate the cost of living.
More information can be found here.