Legal News

Bar set high for challenges to pension trustee decisions (British Airways v Airways Pension Scheme Trustee)

Published on: 23 May 2017

Table of contents

  • Original news
  • What was the case about?
  • What did the High Court decide and why?
  • Exercise of amendment power to introduce discretionary increase power
  • Decision to exercise power to grant discretionary pension increase
  • Decision-making in relation to the discretionary increase power
  • What are the implications of the judgment?
  • Case details

Article summary

Pensions analysis: The High Court has ruled that the decisions of the trustees of the Airways Pension Scheme to amend the Scheme to introduce a power for the trustees to grant discretionary pension increases and subsequently to exercise that power were valid and effective. The Lexis®PSL Pensions team take a look at the court’s judgment, which demonstrates that if pension scheme trustees take advice, follow a proper decision-making process and carefully document their decisions, it will be difficult for sponsoring employers or members to challenge those decisions in the courts.

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