Guide to preparing for retirement

As you begin to prepare for retirement, you will need to consider these important questions ... What can I expect from my BP benefits during retirement? Where can I find more information? Am I financially ready for retirement?
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Note: This section contains general information to help you understand your BP benefits. However, eligibility for plan benefits (be it retirement, medical or the other benefits listed here) is based on the terms of the particular plans, and a benefit being listed under the Retiring from BP tab does not mean that you are eligible for that particular benefit. For plan eligibility questions, please refer to the Benefits Handbook.

At BP, we have a commitment to provide employees with a comprehensive Total Reward package, including benefits that help you with your retirement income needs.

However, it's your responsibility to understand and manage your retirement benefits in order to get the most from them.

Am I financially ready for retirement?

A secure and comfortable retirement is some people’s goal. And now because we are living longer, healthier lives, we can likely expect to spend more time in retirement than our parents and grandparents did. Achieving this goal of having a secure and comfortable retirement is much easier when you plan your finances.

Here are some important questions to ask yourself regarding your finances in retirement.

How long will my retirement last?

As life expectancies have steadily increased, the average retirement period has become longer. When planning for your retirement income, consider your age at retirement and factor in those years in retirement.

What is my planned retirement lifestyle?

Your lifestyle during retirement is an important factor when preparing for retirement. You may be thinking about traveling, volunteering or working on a part-time basis. So be sure your retirement income can provide for your planned lifestyle.

How much will I need in retirement?

Research shows that you should consider replacing somewhere between 80-100% of your pre-retirement income. Keep in mind your expenses will change in retirement — some will decrease such as the taxes you’re paying as an active employee, while some may increase such as medical and long-term care expenses.

What are my sources of retirement income?

Consider where your retirement dollars will come from. BP’s Retirement Accumulation Plan and Employee Savings Plan (if you participate) are just two sources of your retirement income. Social Security benefits, if you are eligible, and personal savings are other sources. Be sure to consider all your sources of retirement income when figuring how much you will need.

 
BP offers retirement benefits that can help provide you with financial security in retirement. But remember, it's never too early to prepare for your retirement, so start by using valuable resources such as BP Retirement Services at Fidelity and PricewaterhouseCoopers’ (PwC) financial education and assessment services.

What can I expect from my BP benefits during retirement?

BP’s retirement income benefits

BP offers comprehensive retirement benefits that can help provide you with financial security in retirement, including the Retirement Accumulation Plan (pension plan), and if you participated — the Employee Savings Plan. Combined, these plans can provide substantial income during your retirement years.

BP Retirement Accumulation Plan (RAP)

The BP Retirement Accumulation Plan is a cash balance pension plan that is solely funded by BP. This plan allows your retirement benefit to grow steadily over your career at BP through pay credits and interest credits. Your pay credits are determined by your eligible pay, years of service and/or age.

BP Retirement Services at Fidelity keeps track of your notional account balance and you can view your balance online at any time. As you consider your sources of retirement income, be sure to use BP Retirement Services at Fidelity to model what your benefit payment will be at the time you choose to retire.

BP Employee Savings Plan (ESP)

Participating in the Employee Savings Plan is completely voluntary, and you decide whether to contribute, how much to contribute and how to invest your contributions. You may contribute a percentage of your eligible pay — on a before-tax, after-tax or Roth 401(k) basis, subject to plan and annual IRS limits. BP matches a portion of your contributions — $1 for $1 — up to 7% of eligible pay, per pay period.

You are always 100% vested (meaning you have a permanent right to the money) in your own contributions, and you are 100% vested in BP’s matching contributions after three years of service. BP Retirement Services at Fidelity can help you enroll in the plan at any time, or if you are already participating, they can help you with any transactions in your account.

BP’s health and protection benefits

Health benefits

As with your retirement income plans, you need to plan for retiree medical coverage. BP offers a retiree medical program with prescription drug coverage that can help alleviate some of the cost. If you were enrolled while you were employed, you will have access to dental, vision and health care spending account continuation through COBRA coverage for up to 18 months.

Please keep in mind that there are certain benefits that will no longer be available after you leave BP, including:

  • Dependent care spending account.
  • Short-term disability.
  • Long-term disability.
  • Accidental death & dismemberment (AD&D).
  • Occupational accidental death (OAD).

Protection benefits

An important consideration for retirement is making sure we take care of ourselves in the event of an accident or illness and we take care of our loved ones in the event of our death.

After leaving BP, you’ll have access to these protection benefits:

  • Long-term care coverage. This benefit is portable, which means you and your eligible family members can continue coverage at the same premium rates.
  • Group Universal Life (GUL) coverage. This benefit is portable, which means your and your spouse's coverage may continue provided you continue to pay premiums.
  • Basic life insurance. You may convert your basic life coverage to an individual policy.
 
When you begin to think about retirement, there are some important things you will need to consider regarding your health and protection benefits.

First, you need to check the eligibility requirements for the BP Retiree Medical Plan offered after you leave BP. You also need to consider the cost for each benefit because some costs may increase for retiree coverage.

So, before you decide to retire, contact the BP HR & Benefits Center. They can assist you with understanding your eligibility and options for health and protection benefits along with coverage costs.

Where can I find more information?

Through this Retiring from BP tab you will find the information you need to learn about your benefits and connect with plan administrators that can help you prepare for retirement such as BP Retirement Services at Fidelity and the BP HR & Benefits Center.

When you decide to retire from BP, you will receive information directly from our various plan administrators including:

  • Fidelity for your retirement income plan(s).
  • Hewitt for your health and protection plans, including basic life conversion information.
  • MetLife for Group Universal Life insurance.
  • John Hancock for long-term care.

Also, it is important to share this information with your spouse, partner and/or family members.

After leaving BP, you will have access to information and tools to help you stay connected and informed, including access to the BP retiree website on LifeBenefits and a retiree newsletter.

Related links

For information about your Social Security benefits including your Social Security Earnings Statement and applying for benefits, go to www.ssa.gov. This is the official website for the United States Social Security Administration
To learn about Medicare, you can go to www.medicare.gov — the official U.S. government site for Medicare. Here you can learn about eligibility, plan choices and cost. For general information, you can also call 1-800-MEDICARE
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