In December 2017 Chevron Trustees announced a pensions of 4.6%, from 1st Feb 2018 .Funds come from the pension fund,
In December 2013 the Company gave the Uk Pensioners a 2.8% increase , unless you retired in the previous two years. Most pensioners of the Chevron UK Pension Plan got the increase, unless they had recently retired or they took a large lump sum on retirement and are on GMP increases only or partly.
Previously in September 2012 the Company gave UK Pensioners a 5.2% increase.
The GMP increases announced late April 2013 were based on the CPI not RPI and this will now continue until the legislation is changed.
In October 2012 the ex Caltex (UK) Expatriate Pension Plan pensioners received their first increase since 2007 (15%).
Final Salary Pension Schemes – Increases
The Pensions Act 1995 required occupational pension schemes to provide increases to pensions in payment in line with RPI to a maximum of 5% (known as Limited Price Indexation (LPI)). This provision for LPI only applies to benefits earned after 6 April 1997 (AVCs are exempt).
This requirement has now been amended, so that that part of the pension earned after 6 April 2005, only needs to be increased in line with RPI, up to a maximum of 2.5%.
However, for that part of the pension earned before 6 April 1997, while scheme rules may grant annual increases, there is no legislation that requires schemes to increase this pension unless the scheme was contracted-out of the State Earnings Related Pension Scheme (SERPS).
The rules of contracting-out require that increases be applied to the GMP as follows:
– no increase for GMPs accrued before 6 April 1988 (but increases on these are paid by the government along with the State Pension); and
– for GMPs accrued between 6 April 1988 and 5 April 1997, the annual rate of increase is the RPI, subject to a maximum of 3%.
We would stress however that these are only the minimum requirements, and it is normally possible for the rules of company pension schemes to provide for a higher level of pension increase.
For 2011 & beyond the government has changed all previous legislation mentioning RPI to CPI, thus the announced 2011 GMP increases use CPI. We understand that only some Texaco deferreds will continue to have increases based on RPI until they take their pension because RPI was written into their scheme.