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

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.