22 January 2008 14:35
Pension holidays could be making a comeback, following reports that BP is to take a break from paying into its scheme.
The oil giant has followed in the steps of rival Shell and is taking a one-year contribution holiday from its £14.7bn pension scheme after a valuation last year revealed it was funded to 135% of its liabilities.
Pension holidays in the 1990s were once seen seen as a key factor that contributed to many pension scheme tumbling into the red with huge deficits.
Paul McGlone, principal and actuary at Aon Consulting, said: “Shell and now BP’s announcement may seem radical – however this is not the case. This is a strategy that a number of smaller companies are already pursuing.
“With schemes being funding more prudently than previously, there is a rational case for considering this strategy. There is, after all, little benefit in continuing to put additional cash into a scheme that is well funded as once cash is in the scheme it can become trapped.”
Meanwhile, Aon said as a result of the sharp stock market fall yesterday, UK pension deficits rose by £15bn, the highest single-day rise since June 2001.
The deficit for the top 200 UK schemes now stands at £42bn, wiping out all the gains made in 2007, Aon said.
Mike Berry
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
