BP Takes a Pension Contribution Holiday

January 23, 2008 (PLANSPONSOR.com) - With its defined benefit pension plan enjoying a 135% funded status, oil giant BP has announced it will not put any additional money into the plan during 2008.

The company is allowed to stop making payments if actuaries put the plan funding level at above 115%,  a BBC news report said. According to the plan’s latest actuarial valuation, the fund’s assets were £14.7billion in September 2007, compared to liabilities of £10.8 billion.

The BBC said the vast majority of the plan’s 12,000 active members do not pay towards their pension, although it is possible to contribute a percentage of salary in return for enhanced benefits.

BP vowed that if the actuary’s next report shows a funding level below the 115% threshold, it will resume making contributions in 2009.