Appendix for BP heritage participants

The following provisions apply to employees who are classified as BP heritage participants. Unless specifically stated in this section, all other provisions of the cash balance formula apply.

BP heritage participant

Generally, a BP heritage participant is someone who was an active participant in the BP America Retirement Accumulation Plan (BP heritage plan) on June 30, 2000, was an active BP employee in the BP heritage plan (or on an approved leave of absence) on July 1, 2000, and has not had a one-year break in service.

Participation

BP heritage participants became participants in the BP Retirement Accumulation Plan (RAP) effective July 1, 2000. 

Opening Account

If you are a BP heritage employee hired before 1989 who participated in BP's former pension plan and made the transition to the BP America Retirement Accumulation Plan, an Opening Account balance was established for you when your retirement benefit was converted into the BP America Retirement Accumulation Plan. Your Opening Account balance was automatically transitioned to the BP RAP.

Current Account

If you are a BP heritage participant, your Current Account began on January 1, 1989 or your hire date if later.

Payment options

If you are a BP heritage participant then, in addition to the previously described payment options under Payment Options in Receiving Your Benefits, the following payment options are also available to you:

  • Partial lump sum and annuity. If you choose a partial lump sum, you'll receive payment of the specified lump sum amount either paid directly to you or rolled over to your BP Employee Savings Plan, an Individual Retirement Account (IRA) or a qualified retirement plan. The balance will be converted to an annuity and paid to you on a monthly basis for the remainder of your lifetime.
  • Level income annuity. This option is designed to provide level payments for you from the time you begin receiving payments until age 65. The plan increases your monthly payment before age 65 based on your estimated Social Security benefit. This monthly benefit is reduced when you reach age 65. You'll continue to receive a somewhat level monthly payment — first from the BP RAP only, and then from the plan and Social Security combined. When you actually begin to collect your Social Security benefit, your pension from the BP RAP won't be affected by any future periodic increases to that benefit provided by the Social Security Administration.
  • Ten year certain and continuous. You will receive reduced monthly payments for your lifetime, with a guarantee that payments for ten years will be made from the plan either to you or to your surviving beneficiary. If you die before the end of ten years, your beneficiary will continue to receive the same monthly amount that you were receiving, until the ten-year period ends.
  • Dual-level income annuity option with joint and survivor (J&S) or certain and continuous. If you elect the J&S or certain and continuous option and die, your benefit is determined as if only the level income option was elected. The post-age 65 level amount is then reduced according to the factors for the second option elected and the pre-age 65 level amount is adjusted to produce a level retirement income before and after age 65. Upon death, your beneficiary will receive a benefit based on the post-age 65 benefit regardless of your age at death.
  • Increasing life annuity. You will receive a reduced monthly annuity payment for your lifetime only. You may not elect a beneficiary, and payments stop upon your death. The amount of your monthly annuity will increase each January 1 based on the plan's regular interest rate.

 

Publication date: July 2019

 

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