BP closes the door to final salary scheme

Jun 3 2009 By nebusiness

OIL giant BP has become the latest firm to close its UK final salary pension scheme to new members, it was confirmed today.

BP told staff yesterday that new recruits would not be able to join the scheme - one of the largest pension funds in the UK, with around 69,000 members - from April.

The group stressed the decision was not made due to any funding difficulty, with its scheme currently around 115% funded, but said the move was made as forecasts revealed soaring liabilities in the future.

BP’s contributions have been steadily increasing each year, reaching around £361m last year, up from £241m in 2004.