General Information

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BTPS: Section C Indexation Case

7 December 2018

The Court of Appeal ruled against BT on 4 December 2018, in the case about the indexation of pensions for some 80,000 members of Section C of the BT Pension Scheme (BTPS).

The CWU welcomes the Court of Appeal decision which will come as a great relief to Section C members.

BT had asked the Court of Appeal to overturn an earlier High Court ruling on BTís interpretation of Scheme rules and on whether BT should be allowed to switch to a different cost of living index for calculating increases to pensions in the future. BT argued that it should be able to decide to switch from the Retail Prices Index to another measure, such as the Consumer Prices Index (CPI) for calculating increases to pensions for Scheme C members. Moving to the CPI would produce lower increases for members.

However, the Court of Appeal dismissed BTís claim, concluding that the Scheme rules had been interpreted correctly in the earlier ruling which found that the RPI had not become an inappropriate measure for the purposes of uprating pensions. As a result it is currently not possible for BT to change from the RPI to another index.

BT is now considering the judgement and potential next steps.

Indexation arrangements for Sections A/B remain unchanged by this case and are linked to the CPI.