BP US Domestic Relocation Policy Transferred Exempt and Experienced New Hires
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BP US Domestic Relocation Policy Transferred Exempt and Experienced New Hires Date: Updated October 1, 2015 Version 3.0 BP US Domestic Relocation Policy – Transferred Exempt and Experienced New Hires 1 PURPOSE OF THIS POLICY ................................................................................. 5 1.1 RELOCATION PROGRAM AND POLICY ADMINISTRATION........................................ 5 2 WHEN TO USE THIS POLICY, APPLICABILITY, AND EFFECTIVE DATE ........................ 5 3 REPAYMENT AGREEMENT ................................................................................. 6 4 CONTRACTUAL MATTERS .................................................................................. 6 5 BEFORE STARTING THE PROCESS....................................................................... 7 6 RELOCATION COSTS / EXPENSE REIMBURSEMENT ............................................... 7 7 RELOCATION ALLOWANCES .............................................................................. 7 7.1 LUMP SUM...................................................................................................... 7 7.2 COST OF LIVING ALLOWANCE (COLA)................................................................ 9 7.3 MISCELLANEOUS EXPENSE ALLOWANCE ............................................................ 9 8 SELLING THE TRANSFEREE’S PRESENT HOME.................................................... 10 8.1 REAL ESTATE AGENT SELECTION ..................................................................... 10 8.2 HOME SALE ELIGIBILITY.................................................................................. 10 8.3 MARKETING ASSISTANCE ................................................................................ 11 8.4 HOME SALE INCENTIVE................................................................................... 12 8.5 EMPLOYEE GENERATED SALE (AMENDED SALE)................................................ 12 8.6 GUARANTEED OFFER...................................................................................... 14 8.7 APPRAISAL PROCESS...................................................................................... 14 8.8 HOME INSPECTIONS ....................................................................................... 14 8.9 CALCULATION OF THE GUARANTEED OFFER/OFFER PERIOD ............................... 15 8.10 DIRECT REIMBURSEMENT……………………………………................................... 16 8.11 VACATING THE HOME AND FINAL EQUITY RECONCILIATION................................. 17 8.12 MOBILE HOMES ............................................................................................ 17 8.13 LOSS ON SALE ASSISTANCE ............................................................................ 17 8.14 DUPLICATE HOUSING ..................................................................................... 18 8.15 CURRENT RENTERS: LEASE CANCELLATION ...................................................... 19 9 DESTINATION ASSISTANCE .............................................................................. 19 9.1 RENTING IN THE NEW LOCATION...................................................................... 19 9.2 HOME FINDING ASSISTANCE ........................................................................... 19 10 HOME PURCHASE ASSISTANCE........................................................................ 19 10.1 ELIGIBILITY FOR HOME PURCHASE ASSISTANCE ................................................ 19 10.2 IF AN ELIGIBLE HOMEOWNER CHOOSES TO PURCHASE IN THE NEW LOCATION:..... 20 Pa ge 2 BP US Domestic Relocation Policy – Transferred Exempt and Experienced New Hires 10.3 CLOSING COSTS ON THE PURCHASE................................................................. 20 10.4 EQUITY ADVANCE .......................................................................................... 21 10.5 NEW HOME FINANCING .................................................................................. 22 11 HOUSEHOLD GOODS SHIPMENT ...................................................................... 23 11.1 AUTOMOBILES ............................................................................................... 24 11.2 MOVES INTO/OUT OF ALASKA AND HAWAII ....................................................... 25 11.3 PREPARING OIL/GAS EQUIPMENT THAT SHIPS WITH THE HOUSEHOLD GOODS..... 25 11.4 SELF MOVE ................................................................................................... 25 11.5 MOVES INTO/OUT OF TEMPORARY HOUSING..................................................... 26 11.6 MOBILE HOME TRAILER ................................................................................. 26 12 FINAL MOVE.................................................................................................. 26 13 PROFESSIONAL RE-CERTIFICATION.................................................................... 27 14 TAX CONSIDERATIONS .................................................................................... 27 TAX SUMMARY CHART.............................................................................................. 29 APPENDIX: COST OF LIVING ALLOWANCE (COLA) ..................................................... 30 Page 3 BP US Domestic Relocation Policy – Transferred Exempt and Experienced New Hires BP US Domestic Policy Summary* Transferred Exempt and Experienced New Hires • Must meet IRS distance test (i.e. 50 mile test). Eligibility • Must complete relocation benefits within 1 year of work start date. • Provided to offset expenses associated with: home finding trip, temporary living, travel to report Lump Sum to work, travel to return home to ship household goods and final move meals. Cost of Living • Financial assistance may be provided if the new work location is deemed to have a higher cost Allowance of living than the old work location. (COLA) • Determined by BP’s third party data provider. Miscellaneous • One-time allowance to offset incidental expenses. Expense • Equivalent to 10% of the transferee’s annual salary, with a minimum of $4,500 and a maximum of Allowance $10,000. Broker • Relocation Counselor will register a referral with the transferee’s real estate agent.• Utilization of Registration this program is required. • Transferees are strongly encouraged to utilize the marketing assistance program. Marketing • The list price must be no higher than 105% of the average of the most probable sale price of Assistance the two Broker’s Market Analyses (BMA’s). • The transferee must be at least a 50% owner of the home and named in the title to the home. Home Sale • Transferees are eligible for an Employee-Generated (Amended) Sale and the Guaranteed Offer. Assistance • Transferee’s list price is to be adjusted to within 105% of the Guaranteed Offer, once received. • 3% of the sale price. Home Sale • Must sell after authorization is processed by the relocation service provider and prior to Incentive expiration of Guaranteed Offer. • Sale price can be greater than, equal to or within 95% of the Guaranteed Offer. • Loss defined as the difference between the original purchase price and the sale price. • 100% of the loss covered, up to $75,000 if the transferee obtains an Employee Generated Loss on Sale (Amended) Sale. Assistance • 90% of the loss covered, up to $75,000 if the transferee accepts the Guaranteed Offer or sells the home outside the Employee Generated (Amended) Sale process. (For current homeowners only) Duplicate • Reimbursement may begin 31 days after the transferee starts incurring duplicate expenses. Housing • Reimbursement until the close date on the former residence or three months, whichever comes first. Lease • If the transferee is required to pay a lease cancellation fee, the reimbursable amount is limited to Cancellation the equivalent of up to three (3) months rent. Rental /Home • Destination assistance coordinated by the relocation service provider for both rental and Finding home finding. Assistance Home Purchase • BP will cover most of the typical buyers’ closing costs on the transferee’s new home purchase. Assistance • See policy for eligibility requirements. • Maximum advance amount will be equal to the lesser of actual funds required or 95% of the equity Equity Advance in the property. • Coordination of packing, shipping and unloading provided by the Relocation Counselor. Household • Automobiles: BP will pay to ship one (1) car if the move is less than 400 miles; two (2) cars if Goods the distance is over 400 miles. Shipment • See policy details for moves into/out of Alaska. • Self move options available – reimbursement for trailer or truck rental available. • Reimbursement for airfare, lodging (one night in old and one night in new location). Final Move • If distance is less than 250 miles, mileage reimbursement at current IRS mileage rates, in lieu of airfare, for up to 2 vehicles. • This provision is to support the employment transition needs of the transferee’s spouse or Professional partner. Re-certification • BP will provide tax assistance (gross up) for certain taxable payments to assist with the additional Tax Assistance federal, state and local income taxes and FICA. See policy for details. *Please refer to the policy document for complete details on each policy component. Pa ge 4 BP US Domestic Relocation Policy – Transferred Exempt and Experienced New Hires 1 Purpose of This Policy This document outlines the provisions that BP employees may be eligible to receive in respect to a US domestic relocation. It is the intent of this policy to cover