BP (BP)

Note 34 — Other postretirement benefits

        Certain Group companies in the US provide postretirement healthcare and life insurance benefits to their retired employees and dependants. The entitlement to these benefits is usually based on the employee remaining in service until retirement age and completion of a minimum period of service. The plans are funded to a limited extent. The cost of providing postretirement benefits is assessed annually by independent actuaries using the projected unit credit method. The date of the latest actuarial valuation was January 1, 2004 and the date of the most recent actuarial review was December 31, 2004.

        At December 31, 2004 the independent actuaries have reassessed the obligation for postretirement benefits at $3,676 million ($4,143 million at December 31, 2003). The discount rate used to assess the obligation at December 31, 2004 of the plans was 5.75% (6.0% at December 31, 2003).

Note 34 — Other postretirement benefits

        Certain Group companies in the US provide postretirement healthcare and life insurance benefits to their retired employees and dependants. The entitlement to these benefits is usually based on the employee remaining in service until retirement age and completion of a minimum period of service. The plans are funded to a limited extent. The cost of providing postretirement benefits is assessed annually by independent actuaries using the projected unit credit method. The date of the latest actuarial valuation was January 1, 2004 and the date of the most recent actuarial review was December 31, 2004.

        At December 31, 2004 the independent actuaries have reassessed the obligation for postretirement benefits at $3,676 million ($4,143 million at December 31, 2003). The discount rate used to assess the obligation at December 31, 2004 of the plans was 5.75% (6.0% at December 31, 2003).