BP has responded to the new pension contribution limits with a raft of education and support for employees.
Ronnie Murray, head of UK pensions and benefits, is keen to ensure all staff are up to speed on the new rules. “We recognise that BP can, and should, help employees understand the new pension taxation changes, so they are informed and able to help themselves,” she says.
The oil and gas company, which has more than 10,000 UK employees, is running everything from seminars to telephone clinics. As well as updating the content and tools on its pensions website to show the new limits, it will offer regulated financial advice for affected employees.
“We have confirmed that overall, the individual consequences of the tax charge is the employee’s responsibility, including any additional pension arrangements outside BP,” says Murray. “This includes the payment of any resulting tax charge, which means there will not be any compensation provided by the company.”
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However, the company will allow affected employees to move to an accrual rate that is expected to result in a nil pensions tax charge (subject to agreement).
“All this will continue to evolve as the full details are published by the government and BP learns from the current activities,” says Murray.
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