Supplementation

Last updated July 25

Please note that the information below is provided to the best of our knowledge and does not constitute financial advice. Do consult a financial advisor before making any decisions about your pensions

Pension Supplementation

This is meant to compensate for inflation, however the Company pension supplementation is based on only a percentage of the RPI indices issued by the government and which covers a broad range of expenditure.

Pensioners spending habits are different to those of people in employment and tend in the main to be affected by Council Tax, food, lighting and heating which is currently more than double RPI at 9.5% pa.

The Company has in recent times made substantial contributions to the pension fund. They have also improved the period between pension increases, but normally pay no more than 90% of RPI (the May 2007 increase was only 87% of RPI, the Dec 2008 will be 89% of RPI).

For post April 1997 service the Company is obliged to increase pensions annually but increases are capped at RPI or a maximum of 5% pa and for post April 2005 service increases are capped at RPI or a maximum of 2.5% pa.

For 2011 & beyond  the government has changed all previous legislation mentioning RPI to CPI, thus the announced 2011 GMP increases use CPI.

Below is a summary of the maximum pension increases from the Company in recent years:

Date     Increase    Time since last increase  
2025, Nov3%22 months
2024, Feb5%17 months
2022, Oct7.8%19 months
2020, Mar3.8%25 months
2018, Feb4.6%50 months
2013, Dec2.8%15 months
2012, Sept5.2%19 months
2011, Feb4.7%26 months
2008, Dec4.90%19 months
2007, May4.00%16 months
2006, Jan4.75%21 months
2004, Apr5.00%33 months

For retirement planning, get a pension forecast from the Chevron UK Pensions web site. The increases however do not keep up with RPI and over the last 20 years have fallen behind considerably.

Some Texaco deferred pensions will continue to have increases based on RPI until they take their pension because RPI was written into their scheme.