Defined Benefit Pension Transfer

BP Pension Fund

Do you have an old BP Pension Fund you are thinking about transferring into a more flexible arrangement?

Below is a general overview of what the scheme benefits are, these might vary from member to member, depending on what category you belonged to.

If you would like to find out if transferring your pension is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free initial consultation.

BP Pension Scheme

Disclaimer

The information we provide here is our understanding of the pension scheme and may not be the latest, there may also be some detail missing. It is provided in good faith as an overview of the details we hold. There has not been any endorsement or otherwise of these details by the pension scheme, their sponsoring employer or scheme administrators.

This is a partial summary of the complex benefits provided through potentially many schemes, where retirement options can be very different within the same scheme or the same individual sections of those schemes.

If you are either a current or deferred member of the pension scheme and wish specific information about your personal benefits, the scheme administrator will need to be contacted.

BP Pension Fund

Administrator: https://pensionline.bp.com/

Scheme Retirement Age:

At age 65. Members who joined the scheme before 1 December 2006 can receive the pension without deduction from age 60.

Are partial transfers allowed? No.

Scheme Funding Position:

As at 31 December 2020 the scheme was in surplus with a funding level of 116% (assuming the ‘ongoing funding’ basis. Whereas using the buy-out basis it shows a deficit and funding level of 98%.

Revaluation:

Increase in line with RPI up to a maximum of 5% pa.

Escalation:

Increase in line with RPI up to a maximum of 5% pa.

Flexible Options

The scheme applies a special early retirement discount at age 55 of 15%.

Death in Deferment

A lump sum equal to 5 times the member’s deferred pension at date of death together with a survivors pension of 66.67% of the member’s deferred pension at date of death.

Children’s pensions are payable in addition until the recipient reaches age 18 (or age 23 if still in full-time education or vocational training).

Death in Retirement

A survivors pension of 66.67% of the member’s deferred pension at date of death ignoring any reduction for tax-free cash or early retirement. On death within the first 5 years after the pension starts, a lump sum representing the member’s pension payments that would have been made at the rate for the remainder of the 5 year period.

Children’s pensions are payable in addition until the recipient reaches age 18 (or age 23 if still in full-time education or vocational training).

Need BP Pension Transfer Advice?

If you are a member of the BP Pension Fund and would like to know if transferring or cashing in your pension at 55+ is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free consultation.

Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority and specialise solely in defined benefit pension transfer.

Pension Transfer Consultation

Get Started Today

Free Pension Transfer Guide & Consultation
If you would like to find out if transferring your pension or taking a cash lump sum is suitable for you, we can provide a free initial Pension Transfer Consultation known as abridged advice.

Simply complete your details below, and we will send you our Pension Transfer Consultation Pack and Enquiry Form.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • What your plans are for retirement.
  • Your needs for flexibility and control.
  • The likely cost of more in-depth advice.

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Defined Benefit Pension Transfer Warning

Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.

Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.

If you release all your money from your pension early you will not have anything left to provide you with income in retirement.

When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.

Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.

Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).

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