BP 2007 Annual Report Download - page 70

Pension benefits in excess of the individual lifetime allowance set by
legislation are paid via an unapproved, unfunded pension arrangement
provided directly by the company.
US directors
Dr Grote participates in the US BP Retirement Accumulation Plan
(US plan), which features a cash balance formula. Pension benefits are
provided through a combination of tax-qualified and non-qualified benefit
restoration plans, consistent with US tax regulations as applicable.
The Supplemental Executive Retirement Benefit (supplemental
plan) is a non-qualified top-up arrangement that became effective on
1 January 2002 for US employees above a specified salary level. The
benefit formula is 1.3% of final average earnings, which comprise base
salary and bonus in accordance with standard US practice (and as
specified under the qualified arrangement), multiplied by years of service.
There is an offset for benefits payable under all other BP qualified and
non-qualified pension arrangements. This benefit is unfunded and
therefore paid from corporate assets.
Dr Grote is eligible to participate under the supplemental plan. His
pension accrual for 2007, shown in the table below, includes the total
amount that could become payable under all plans.
Other benefits
Executive directors are eligible to participate in regular employee benefit
plans and in all-employee share saving schemes and savings plans
applying in their home countries. Benefits in kind are not pensionable.
Expatriates may receive a resettlement allowance for a limited period.
Mr Inglis is currently based in Houston, US, and the company provides
accommodation in London.
Pensionsathousand
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Additional pension
Accrued pension earned during the Transfer value of Transfer value of Amount of B-A less
c c
Service at entitlement year ended accrued benefit accrued benefit contributions made by
b
31 Dec 2007 at 31 Dec 2007 31 Dec 2007 at 31 Dec 2006 (A) at 31 Dec 2007 (B) the director in 2007
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Dr A B Hayward (UK) 26 years £488 £250 £4,017 £7,986 £3,925
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d
Dr D C Allen (UK) 29 years £248 £20 £4,006 £4,256 £250
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I C Conn (UK) 22 years £238 £69 £2,510 £3,375 £865
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Dr B E Grote (US) 28 years $778 $102 $7,591 $7,902 $311
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A G Inglis (UK) 27 years £296 £114 £2,936 £4,613 £1,677
Directors leaving the board in 2007
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Lord Browne (UK) n/a £1,050 £0 £21,700 £21,552 (£148)
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J A Manzoni (UK) n/a £193 £5 £2,961 £4,195 £1,234
aThis information has been subject to audit.
bAdditional pension earned during the year includes an inflation increase of 4.4% for UK directors and 2.3% for US directors.
cTransfer values have been calculated in accordance with version 8.1 of guidance note GN11 issued by the actuarial profession.
dDr Allen is due to retire on 31 March 2008 and will be entitled to take an immediate unreduced pension. The figures in the table relate to 2007 and so do not include
anticipated incremental cost of the unreduced pension (£1.36 million).
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