UK - The BP pension scheme's announcement it would take a contributions holiday in 2008, has been met with approval by Aon consulting.
Paul McGlone, principal and actuary, Aon Consulting, commented: "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. "
He cited how some pension funds had begun creeping out of deficit making the environment more open to contribution holidays.
McGlone continued: "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."
BP announced it would also take a holiday from paying into its Burmah Castrol Pension Fund which was valued at 128% funded at the end of September 2007.
The next three year evaluation for both schemes has been scheduled for January 2009.
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