Under the LTD Plan, certain amounts that you receive or are considered to have received operate to reduce your LTD benefits. These amounts are called “offsets.”

Offsets include any amounts you or your dependents receive under:

  • The Canada and Quebec Pension Plans.*
  • The Railroad Retirement Act.*
  • Any local, state, provincial or federal government disability or retirement plan or law with benefits payable for injury or illness as the result of employment with BP.
  • Any work-loss provision in mandatory no-fault auto insurance.
  • Any workers' compensation, occupational disease or unemployment compensation law or similar state or federal law with benefits payable for injury or illness as the result of employment with BP, including all permanent and temporary disability benefits or damages, compromises or settlements paid in place of such benefits, regardless of whether liability is admitted.*
  • Social Security disability or retirement benefits you or any third party receives (or is assumed to receive) on behalf of you or your dependents, or which your dependents receive (or are assumed to receive) because of your entitlement to such benefits.*
  • Any proceeds payable under any franchise or group insurance or similar plan. If other insurance applies to the same claim for disability and contains the same or similar provisions for reduction because of other insurance, Cigna, the claims administrator, will pay its pro rata share of the total claim.
  • Amounts paid by a third party because of loss of earnings or earning capacity through settlement, judgment, arbitration or otherwise, regardless of whether liability is determined.
  • Any disability earnings. If work incentive benefits apply to you, your LTD benefits will be reduced to the extent required under the work incentive benefit calculation.
  • Any distribution made from the BP Retirement Accumulation Plan (RAP). This offset will be applied to reduce your LTD Plan benefit whether you receive your BP RAP distribution in hand or choose to roll it over. To calculate the amount your LTD Plan benefit will be offset, regardless of the optional form of payment you elect, your BP RAP distribution will be converted into a single life annuity reduced based on your current age at the time of the BP RAP distribution and will be applied for the duration of the LTD claim. Your LTD Plan benefit will not be offset for any other distribution from a BP-sponsored employee benefit plan or program (e.g., BP Employee Savings Plan or any other employee savings plan, non-qualified plan, deferred compensation plan or stock option plan). To avoid having your LTD Plan benefit offset, you must defer your distribution from the BP RAP until you are no longer eligible to receive an LTD benefit.
  • Any salary or wage continuance plan offered by the employer (including STD benefits).

* Includes benefits you're eligible to receive — even if you have not actually received them — unless you submit satisfactory proof to Cigna that you have applied for those benefits and that they have been denied, you sign a reimbursement agreement and you provide satisfactory proof that all appeals for disability income have been made unless Cigna determines that further appeals are not likely to succeed.

The following table shows how any lump-sum offsets you receive are applied to your LTD benefits.

From other sources paid in a lump sum that ...
Covers a specific time period.
Offsetting payments will be prorated over that time period.
Does not cover a specific time period.
Offsetting payments will be prorated over five years.
Does not specifically allocate a certain amount to disability income.
The total amount will be considered an offsetting benefit.

Once the initial reduction to your LTD benefits has been made to reflect an offsetting benefit, your benefits will not be further reduced by cost-of-living adjustments to the offsetting benefits.


Publication date: April 2018


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