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BP Retailing Pension & Life Assurance Scheme

betterpreparedmember’s guide

June 2018

This booklet provides a summary of the Scheme. The full details are set out in the trust deed of the BP Pension Fund and the rules of the BP Retailing Pension & Life Assurance Scheme. The Scheme is a participating section of the Fund. The trust deed and rules are the legal documents governing the Scheme and they will always override this booklet if there is a dispute.

For copies of these documents, please contact BP UK pensions and benefits (see page 23) or visit the PensionLine website.

Words in italics are explained in the separate jargon buster.

Your guide to the BP Retailing Pension & Life Assurance Scheme June 2018

https://pensionline.bp.com/Homepage

Scheme do for me?

What can the


The Scheme is a money purchase arrangement – this means that contributions made by you and the company are paid into your own retirement account in the Scheme. The pension provided by the Scheme will depend on the amount you have built up in your own retirement account (a combination of the contributions made by you and the company and any investment returns) and the cost of buying a pension when you retire.

There are many benefits to being a member of the Scheme, including:

• A low-cost, tax-efficient way to save for your future

• The flexibility to choose how you invest your retirement account

• The option to pay extra contributions towards your pension

• Contributions from the company

• A pension for life when you retire

• The option to take a tax-free lump sum at retirement

• The option to retire early or late

• Life cover if you die in service

Sounds too good to be true? Read on to find out more…

What can the Scheme do for me?

Regardless of how far away retirement is, you need to start to think about the standard of living you’d like once you stop working. Although the State will give you a pension, you need to consider whether this will be enough for you to live on.


join the Scheme?

How do I


All you have to do is complete the joining form included in your new joiner pack and return it to the address given on the form. If you do not join at your first opportunity, or opt out and ask to rejoin later, entry will be subject to the agreement of the company.

Membership is voluntary, but if you do not join the Scheme, the company may have a duty to automatically enrol you if you are aged 22 or over and under State pension age, and earn more than the threshold for automatic enrolment (£10,000 a year). You will receive an automatic enrolment notification if this is the case. You will have the right to opt out of the Scheme within one month of being automatically enrolled by completing the opt-out form.

Can I pay into other pension schemes while I’m a member of the Scheme?

You do have the option to contribute towards a personal pension while a member of the Scheme, although not directly from the pay you receive from the company.

Once I’ve joined, what communications will I receive from the Scheme?

The legal documents governing the Scheme, along with the trustee’s annual report and accounts, forms, newsletters and announcements are all available on PensionLine, or can be obtained from BP pensions and benefits (see page 23 for contact details). You will also receive a statement of your benefits with the Scheme each year. This explains where your money is invested, how much you and the company have paid into your retirement account and how much your benefits will be worth at retirement.

How do I join the Scheme?

You can join the Scheme if you are a permanent employee of the company aged between 16 and 75.


http://pensionline.bp.com

will it cost me?

How much


• You pay contributions depending on the level of basic pay you receive

• Your contributions receive tax relief

• The company also pays contributions into your retirement account – this is money from the company you wouldn’t otherwise get

• You can pay additional contributions to top up your benefits

How much do I pay?

In order to build up benefits in your retirement account you only need to pay 2% of your basic pay.

Look at what you save

The actual cost of membership to you is reduced because you receive tax relief on your contributions. For every £1 you pay, your take-home pay is only reduced by 80p if you are a basic rate tax payer, because you receive tax relief of 20%. Higher-rate tax payers may also be eligible for further tax relief. The table below shows how this works:

How much will it cost me?

By paying into the Scheme, you are taking some important steps towards preparing for your financial future. And it costs less than you think!

Your basic pay Your contributions at 2% Actual cost to you after tax relief at 20%

£500 a month £10 a month £8 a month

£750 a month £15 a month £12 a month

£850 a month £17 a month £13.60 a month



Can I pay more?

Increasing your pension contributions is a tax-efficient way of boosting the pension you will receive at retirement. You can pay additional contributions on top of your basic contributions. You also receive tax relief on these contributions and can vary the amount and frequency, so you can enjoy added flexibility too.

If you would like more information about paying additional contributions, please contact BP UK pensions and benefits (see page 23).

What does the company pay?

The company pays a minimum of 8% of your basic pay – that’s four times more than what you pay! You pay just 2% of your basic pay.



Plus

The company pays the cost of providing lump sum death benefits, so you can rest assured that your loved ones will receive financial support if you die. The section ‘Will my dependants be looked after if I die?’ provides more information.

And

The company also pays for the cost of administering the Scheme. This means that, other than to cover investment charges, all your contributions, and all the company’s contributions to your retirement account are used to provide your retirement benefits.

Are there limits on how much I can pay and save?

The Scheme limits the amount you can contribute to 15% of your total taxable earnings a month, including your 2% basic contribution.

The bigger picture

You can save as much as you like into any number and type of registered pension scheme and get tax relief on contributions of up to 100% of your annual UK earnings (or £3,600 if this is greater), subject to an annual allowance.

There is also a maximum amount applied to the tax-privileged savings you can build up in a pension fund throughout your life. This value is called the lifetime allowance. If the value of your total pension savings, including your past and present savings from all other arrangements, exceeds the lifetime allowance, you will pay a tax charge on the excess called the lifetime allowance charge.


money invested?

How is my


The separate investment guide tells you more about investing for your retirement with the Scheme, including:

• The investment options available to you

• The different types of funds you can invest in

• How you can manage your investments

Remember that you should speak to an independent financial adviser (IFA) if you have any doubts regarding decisions about your Scheme benefits or investments. See page 24 for information about finding an IFA.

How is my money invested?

While you are a member of the Scheme, you and the company pay contributions into your retirement account. These contributions are invested for you in funds which aim to increase the value of your retirement account – if you didn’t invest your contributions they’d take forever to build up.


get when I retire?

What might I


What might I get when I retire?

As a member of the Scheme, you choose what you get at retirement.

You will have the option:

• To retire early from age 55

• To retire late up to age 75

And you will receive:

• A pension for life

• Other benefits chosen by you at retirement; including the option to take part of your retirement account as a tax-free cash lump sum.

When can I retire?

Normal retirement age is 65 for men and women.

If the company agrees, you may retire from age 55. Your benefits may be lower than if you were to retire at 65 as your fund will have had less time to benefit from investment returns. You can also choose to take your benefits after age 65, or at any time if you suffer from ill health.

What are my options when I retire?

How you take your benefits is one of the most important financial decisions of your life. As a result, it’s worth taking the time to make sure you understand all your options and make the right choice. You have several options about how you take your benefits.

You may take up to 25% of your retirement account as a tax-free lump sum. Details of the actual amount will be given to you when you retire.

After deducting any tax-free cash you decide to take, the balance of your retirement account can be used to provide pension benefits.

Depending on your circumstances, you may choose to buy a single life pension if you are unmarried and have no dependants. Alternatively, if you are married or in a civil partnership, you may wish to provide a pension for your spouse or partner when you die. You may also wish to provide some form of inflation-proofing on your pension so that it increases each year in payment.

If you choose to provide for an additional pension for your spouse or civil partner, or you want to buy pension increases, the amount of your own pension will be lower than would otherwise be the case.


What might I get when I retire?

If you have an existing medical condition when you retire which is likely to shorten your life expectancy, you may choose to buy an impaired life pension. An impaired life pension will take account of your condition and you may receive a higher than normal level of income as the pension is expected to be payable for a shorter period. Relevant health problems might include cancer, chronic asthma, diabetes or heart attack.

You don’t need to decide what type of pension you would like until you retire, at which time you can choose to buy a pension from any provider in the market and will be given full details of your options.

As an alternative to an annuity, you could choose to transfer your benefits to a drawdown provider of your choice as such an option is not available through the BP Pension Fund. With ‘income drawdown’ you invest the value of your retirement account and then withdraw an income of your choice until the money runs out or you decide to buy an annuity at a later point in retirement. Any unused money in your drawdown account will usually be paid to your spouse, civil partner or dependants when you die.

Another option is to take all of your benefits as cash. The first 25% of this is tax free and the rest is taxed as income.

You can even choose to do a mixture of the above – it really is up to you. With so many options, it is important to get as much information and guidance as you can, so that you can make the right decision for you. You can get free and impartial guidance from the government’s Pension Wise service. For more information, see page 24.

Does being in the Scheme affect my State benefits?

No. The State provides a single tier, flat-rate pension to everyone who has paid or been credited with sufficient national insurance contributions during their working lives. The single-tier State pension replaced the State basic and additional pensions in April 2016.

The State pension is payable from State pension age and it is not included in the lifetime allowance.

You can get a forecast of your future State pension online or by completing Form BR19 which you get by contacting the State pension forecasting team at:

Newcastle Pension Centre, Futures Group The Pension Service 9 Mail Handling Site A Wolverhampton WV98 1LU

Phone: 0345 3000 168 Website: gov.uk/contact-pension-service

To get a forecast you must be more than four months away from State pension age when your application is processed.

You can also fill in the BR19 application form and send it in the post.


https://www.gov.uk/check-state-pension

https://www.gov.uk/contact-pension-service

looked after if I die?

Will my dependants be


What happens if I die in service?

If you die in Scheme service, a tax-free cash sum of three times your basic annual rate of pay will be paid and the value of your retirement account will be refunded.

What if I am not a member of the Scheme?

If you are not a member of the Scheme and you die while working for the company, a tax-free cash sum of two times your basic annual rate of pay will be payable. If you are a permanent employee, you are covered for this benefit from age 16.

How can I look after the ones I love?

It is important that you complete an expression of wishes form to help the trustee decide who to pay any death benefits to in the event of your death. You can use the form to list the names of your chosen beneficiaries. The trustee will then consider your wishes. However, it is not legally bound by your wishes and will use its discretion to pay benefits to one or more of your beneficiaries.

If your circumstances change, for example, if you get married, divorced or you have children, you will need to update your form. Further forms are available on PensionLine or by contacting the BP pensions and benefits team (see page 23).

What happens if I die after retirement?

The benefits payable on your death will depend on the benefits you chose to provide when you retired.

What happens if I die after leaving the Scheme, but before I retire?

Your retirement account will be paid to your legal personal representatives as a lump sum.

Will my dependants be looked after if I die?

We all hope for a long and happy retirement. However, it’s important to think about what will happen to your Scheme benefits if you die. Whether you die before or after retirement, the Scheme provides benefits for your beneficiaries.



my benefits if…?

What happens to


What happens if...

• You leave the Scheme or the company before you retire?

• You are off work on family leave or through sickness absence?

• You get divorced?

If you leave the Scheme before you retire, you can either:

Leave your retirement account invested in the Scheme until you retire

Your retirement account and any additional contributions you have paid into the Scheme will be invested in your chosen fund(s) and will remain invested until you retire when they will be used for your retirement benefits;

or

Transfer out the value of your retirement account

You can transfer your Scheme benefits into your new employer’s pension scheme or into a personal pension.

By transferring out of the Scheme, you give up your entitlement to retirement and death benefits from the Scheme. You should consider talking to an independent financial adviser to check that you will not lose out by transferring your benefits. Your death benefits will be affected if you leave the Scheme. Please see the section ‘Will my dependants be looked after if I die?’

Can I leave the Scheme but continue to work for the company?

You can leave the Scheme and stop paying contributions (known as opting out) at any time by giving one month’s notice in writing to the BP pensions and benefits team. The company will also stop paying contributions into your retirement account. If you pay additional contributions, these will also stop. We strongly recommend that you seek independent financial advice before you do this as you would be giving up valuable benefits.

What happens to my benefits if…?

We know that throughout your working lifetime there will be times when you may move to another employer, you are absent from work or your personal circumstances change. These are covered in this section.


Temporary absence

If you are away from work for a short period of time and receive contractual or statutory sick pay and will be returning to work, your retirement account will continue to build up and you will pay contributions based on your actual pay.

Family leave

Your Scheme service will continue while you are on ordinary maternity leave, ordinary adoption leave or paternity leave, and you will carry on paying contributions based on your actual pay. The company will continue to contribute at the level that would have applied if you had been working normally.

If you take additional unpaid family leave, you will not have to pay contributions and the company will still continue to contribute to your retirement account. However, if for some reason it is decided that the company will not continue to make these contributions, you will be treated as having left Scheme service.

What happens to my benefits in the Scheme if I get divorced?

If you get divorced, your benefits may be subject to a ‘pension sharing order’ as ordered by the Court. If this happens, your retirement account is split at the time of divorce to give both parties their own pension for the future.

What happens to my benefits if…?

What if I am off work?


I should know?

Is there anything else


• How the Scheme is run

• How to contact the BP pensions and benefits team

• How to find an independent financial adviser

• Contact details for other pensions and financial advice services.

How is the Scheme run?

The BP Retailing Pension & Life Assurance Scheme is a participating section of the BP Pension Fund. The trustee of the BP Pension Fund is BP Pension Trustees Limited. The trustee is responsible for the administration and management of the Fund and the payment of benefits from it.

Fund registration

The BP Pension Fund is registered with HM Revenue & Customs under the Finance Act 2004. This means that:

• you receive income tax relief on any contributions you make to the Scheme within certain limits, as long as you stay within the annual allowance;

• you can take up to 25% of the value of your benefits as a cash lump sum, currently paid tax free, when you retire; and

• you build up benefits free of tax, as long as you stay within the lifetime allowance.

Using your benefits for other purposes

The benefits you build up in the Scheme are for you to use at retirement. You cannot waive, assign or promise your benefits to anyone else, or use them as security for a loan. If you try to do any of these things, you will give up your right to Scheme benefits.

Is there anything else I should know?

We’ve summarised the main rules of the Scheme in this guide, but you’ll find some additional information in this section, including:



The security of your benefits

The company intends to maintain the Scheme to provide benefits for its members. If the company was to change or terminate the Scheme for any reason, you would be informed and your benefits dealt with accordingly. (See Pension Protection Fund on page 26.)

Keeping your information safe

The trustee is required to hold and look after your personal data, in line with legal requirements, so that it can administer your benefits under the BP Pension Fund. A privacy notice sets out how the trustee holds personal data and your rights to the personal data held about you. It also tells you who to contact if you want to use those rights, make a complaint or have any questions. If you want a hard copy of the privacy notice, please contact BP UK pensions and benefits.

If I have any questions, who can I contact?

The PensionLine website may help to answer some of your queries, but the BP UK pensions and benefits team is always happy to help.

The contact details are:

BP UK Pensions and Benefits Chertsey Road Sunbury-on-Thames Middlesex TW16 7LN

Phone: 0345 602 1063 If calling from overseas: +44 1932 767 730 Email: [email protected] Website: pensionline.bp.com


https://pensionline.bp.com/TrusteePrivacyNotice

mailto:pensions%40bp.com?subject=



Finding an independent financial adviser (IFA)

If you want to find an IFA in your local area, simply visit unbiased.co.uk. An IFA may charge you for their advice, so please check this with them first.

Pension Wise

Pension Wise is a service from the government that offers free and impartial guidance about what to do with your pension savings. For more information, visit pensionwise.gov.uk.

What if I have a complaint?

Complaints or disputes about any aspect of the Scheme are normally resolved quickly and informally by BP pensions and benefits and you should let the team know your complaint in the first instance. If the matter cannot be resolved informally, there is a formal procedure for the resolution of complaints or disputes, known as the internal dispute resolution procedure (IDRP).

You will be given details of the next steps should this situation arise.

Where else can I get help?

The Pensions Advisory Service (TPAS)

TPAS is available at any time to provide pension information and guidance to members and beneficiaries of the Scheme with any query or dispute they have with the trustee.

TPAS can be contacted at:

The Pensions Advisory Service 11 Belgrave Road London SW1V 1RB

Phone: 0800 011 3797 Email: [email protected] Website: pensionsadvisoryservice.org.uk


https://www.unbiased.co.uk/

https://www.pensionwise.gov.uk/en

mailto:enquiries%40pensionsadvisoryservice.org.uk?subject=

https://www.pensionsadvisoryservice.org.uk/


Pensions Ombudsman

In cases where a complaint or dispute cannot be resolved through the IDRP an application can be made to the Pensions Ombudsman to investigate and determine any complaint or dispute of fact or law involving occupational pension schemes. The Ombudsman can be contacted at:

Pensions Ombudsman 10 South Colonnade Canary Wharf E14 4PU

Phone: 0800 917 4487 Email: [email protected] Website: pensions-ombudsman.org.uk

The Pensions Regulator

The Pensions Regulator (TPR) is able to intervene in the running of schemes where trustees, employers or professional advisers have failed in their duties.

TPR also acts as the Registrar of Occupational & Personal Pension Schemes. The register contains basic information on all registered pension schemes to enable employees to trace the source of their benefits. Information concerning the Scheme has been supplied to the Registrar.

You can contact TPR at:

The Pensions Regulator Napier House Trafalgar Place Brighton East Sussex BN1 4DW

Phone: 0345 600 1011 Email: [email protected] Website: www.thepensionsregulator.gov.uk


mailto:enquiries%40pensions-ombudsman.org.uk?subject=

https://www.pensions-ombudsman.org.uk/

mailto:customersupport%40tpr.gov.uk?subject=

http://www.thepensionsregulator.gov.uk


Pension Protection Fund (PPF)

The PPF was set up in April 2005. Its purpose is to protect the pensions of most members of company-run pension schemes where employers get into financial difficulties.

The PPF may take over the payment of benefits to members, subject to certain limits. The company has to pay a levy to the PPF each year to help provide the necessary funding.

You can contact the PPF at:

Pension Protection Fund Renaissance 12 Dingwall Road Croydon Surrey CR0 2NA



Have I got everything covered?

Here are a few quick things you can do to keep your retirement affairs in order.

Getting started

1. Read through all the information available to get a better understanding of the Scheme and the benefits available.

2. If you would like more information, please visit the pension website at pensionline.bp.com or call your HR team at Milton Keynes.

3. Think about how much you want to pay – the minimum contribution is 2% of your basic pay.

4. Decide where you want to invest your contributions. If you don’t let us know where you would like your money to be invested, you will be invested in the lifestyle option.

5. Complete your expression of wishes form – this is really important if you want the trustee to consider your wishes if you die. Return your completed expression of wishes form to BP pensions and benefits in Sunbury.

Regular checks

1. Make sure that you keep your expression of wishes form up-to-date. You should complete a new form if your circumstances change. For example, if you get married, or have children, you may want to alter your nominations.

2. Take stock of all your pension benefits and other savings or investments, including the State pension – do you think you’ll have enough to live the lifestyle you plan for in retirement?

3. When you receive your benefit statement each year take the time to review your investments. During the time in between, you can visit pensionline.bp.com for more information about the funds available.

4. If you elect to pay additional contributions, reassess your contribution level – are you making the most of your opportunity to save more for retirement? You can increase, decrease or stop your additional contributions at any time.

5. Review your investment choices – do your investment choices match your attitude to risk? Are they right for you and your circumstances?





Remember that investing for your retirement is a long-term arrangement. This guide and its supporting material should help to answer your queries, but should not be taken as advice. If you have any queries, please feel free to contact BP pensions and benefits or, for advice relating to your personal circumstances, please speak to an independent financial adviser using the details on page 24.

BP Retailing Pension & Life Assurance Scheme


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