BA loses discretionary increase battle with trustees
Trustees Agenda posted on 22 May, 2017
British Airways has failed in its attempt to block a decision by the trustees of the Airways Pension Scheme (APS) to award a discretionary increase in 2013.
Amongst its claims, BA said the APS trustees did not have the power to give an increase, especially when the the scheme was in deficit. In his judgement, Justice Morgan said " I accept that the existence of a deficit and the wishes of BA are relevant, even highly relevant considerations, for the trustees to take into account but the existence of a deficit and the absence of BA's consent do not mean that the exercise of the power must be for an impermissible purpose."