The BP Pensioner Group has announced that it has begun a legal process against senior members of BP management and directors of the BP Pension Fund Trustee, following concerns around the value of members' pensions.

The dispute centres around decisions made BP and the Pension Fund Trustee in 2022 and 2023 by, which, according to the BP Pensioner Group, led directly to an 11 per cent fall in the value of the pension in real terms.

This is not the first time that the group has raised concerns around the recent pension increases given high inflation, having also previously called for an investigation into the potential breaches of BP’s code of conduct and values regarding the BP Pension Fund.

And, following on from the appointment of Andrew Spink KC and solicitors Stephenson Harwood LLP, the BP Pensioner Group confirmed that confidential legal letters have now been issued to senior members of BP management and directors of the BP Pension Fund Trustee.

According to the BP Pensioner Group, the letters rely on statements (as well as other evidence) made over a significant period of time by both BP and the trustee about how pension increases will be dealt with and require them to explain why, in light of this evidence, increases have been provided at substantially lower levels than could have been provided for under the scheme.

In particular, the trustee has been asked to reconsider the relevant pension increases and liaise with BP on appropriate increases.

The BP Pensioner Group also warned that, if adequate responses are not received, it will have "little option" than to escalate its own legal response until/unless pension increases at an adequate level are restored.

BP Pensioner Group spokesperson, Mike Slingsby, stated: “It is a matter of deep regret that after seven months of innumerable letters, emails and telephone calls, neither BP’s leadership nor the trustee chairman have seen fit to hold a single direct conversation or meeting with the Pensioner Group, which represents some 2,500 members of the BP Pension Fund.

"This has forced us, reluctantly, to take formal legal steps against the Company that we served loyally for much of our careers and lives."

Whilst BP did not agree to a request from the scheme trustee for an additional discretionary increase of 4 per cent to pensions in payment, which would have made a total increase of 9 per cent, it said that "this was a difficult decision that bp took only after carefully considering many factors".

BP also confirmed that it has provided additional funding to provide support to those most in need, with a one-off, means-tested cost-of-living assistance grant to be paid to BP pensioners on lower incomes.

However, Slingsby argued that "resorting to a one-off charity handout shows a leadership failure to grasp the seriousness of this wholly unnecessary dispute in which BP’s pensioners have seen the value of their pensions significantly cut in real terms".

“A charity offer is completely inadequate, and the company leadership appears to be tone deaf - despite claiming it is listening to its pensioners," he added.

BP Pension Trustee and BP Group have been contacted by Pensions Age for comment.

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