BL said there will be changes to benefits specific to regions.
Will the very expensive final salary pension go or stay to suit T1-T3 cushy salaries?
5 replies (most recent on top)
I rolled my lump sum into the BP 401k and Fidelity took care of everything. Gradually I have been moving it to a Fidelity IRA and a Fidelity Roth IRA. Easily done online.
To answer the question about moving the pension, I say absolutely!! Make sure you have a money manager who would work with you on the roll over. I did work with a wealth advisor for this and they took care of everything and to ensure that you avoid the tax liability (you have 90 days to do this in the US before the IRS classifies that as present day taxable income). It's a complicated process for the uninitiated. I regret that I still have money in BP shares because they're worth less than half.
Is it a good idea to move the pension to another fund outside of BP when we leave?
Pensions don't attract young talent. Especially when you have just ended the careers of 10,000 people. Talent is not stupid, they are attracted to salary today not a potential pension in 40 years time.
Reform the very generous pension scheme and pay people more.
Wouldn't be surprised to see them get rid of the pension. The mechanics of the pension are fairly complex to the point where its not going to be clear to potential hires how big the benefit is (and its a pretty good benefit, similar in magnitude to 401k match). If you assume the primary goal of salary/benefits is to attract talent, they'd be better off reallocating that contribution into base salaries or increasing the 401k match.
Or they may just cut it as a way to achieve a more palatable pay cut...