These excerpts taken from the BP 11-K filed Jun 25, 2008.
1. DESCRIPTION OF PLAN
The following description of the BP Partnership Savings Plan (the Plan) provides general information only. Participants should refer to the Plan document for more complete information.
The Plan, established on April 1, 1988, is a defined contribution plan which is subject to and complies with the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Certain salaried employees of BP Corporation North America Inc. (the Company) and its subsidiaries that are associated with the Companys retail operations are eligible to participate in the Plan. The Company is an indirect wholly owned subsidiary of BP p.l.c. (BP). The Company reserves the right to amend or terminate the Plan at any time.
The purpose of the Plan is to encourage eligible employees to regularly save part of their earnings and to assist them in accumulating additional financial security for their retirement. The Plan provides that both participant contributions and Company matching contributions be held in a trust by an independent trustee for the benefit of participating employees. Plan assets are held in the BP Master Trust for Employee Savings Plans (the Master Trust). The trustee of the Master Trust is State Street Bank and Trust Company.
Fidelity Investments Institutional Services Company, Inc. is the Plans recordkeeper. The Company is the Plan sponsor and the Companys Vice President-HR Total Rewards, Western Hemisphere is the Plan administrator.
Under the Plan, participating employees may contribute up to 100% of their qualified pay on a pre-tax and/or after-tax basis, subject to Internal Revenue Service (IRS) limits. Participants who attain age 50 before the end of the applicable plan year are eligible to make additional elective deferrals (catch-up contributions), subject to IRS limits. Participants may elect to invest in numerous investment fund options offered under the Plan. Participants may change the percentage they contribute and the investment direction of their contributions at any time throughout the year. A specified portion of the employee contribution, up to a maximum of 3 percent of compensation, as defined, is matched by the Company in the form of cash contributions, which are invested in funds selected by participants. Participants are permitted to rollover amounts into the Plan representing distributions from other qualified plans. Participants may elect to sell any portion of their investment fund(s) and reinvest the proceeds in one or more of the other available investment alternatives. Except where the fund provider, the recordkeeper, or the Plan have restrictions or take discretionary action responsive to frequent trading or market timing concerns, there are no restrictions on the number of transactions a participant may authorize during the year.
The benefit to which a participant is entitled is the benefit which can be provided by the participants vested account balance. Participants are immediately vested in their
1. DESCRIPTION OF PLAN (continued)
participant contribution accounts. Vesting in Company matching contribution accounts is dependent upon specific criteria as described in the Plan document. Forfeitures of Company contributions by participants who withdrew from the Plan before vesting amounted to $29,648 during the year ended December 31, 2007. The Plan uses forfeitures to reduce future Company contributions.
All reasonable and necessary Plan administrative expenses are paid out of the Master Trust or paid by the Company. Generally, fees and expenses related to investment management of each investment option are paid out of the respective funds. As a result, the returns on those investments are net of the fees and expenses of the managers of those investment options and certain other brokerage commissions, fees and expenses incurred in connection with those investment options.
In November 2007, the Company announced that it would sell all of its company-owned and company-operated retail sites in the US. The majority of sites will be sold to franchisees with the remaining sites sold to dealers and large distributors.
The following description of the BP Partnership
The Plan, established on April 1, 1988, is a defined
The purpose of the Plan is to encourage eligible
Fidelity Investments Institutional Services Company,
Under the Plan, participating employees may contribute
The benefit to which a participant is entitled is the
participant contribution accounts. Vesting in Company
All reasonable and necessary Plan administrative
In November 2007, the Company announced that it would