Exercise of amendment power to allow discretionary pension increases went beyond purpose of power (British Airways v Airways Pension Scheme Trustee)

Table of contents

• Original news
• What are the practical implications of this decision?
• What was the background to the Court of Appeal’s decision?
• What did the Court of Appeal decide?
• Case details

Article summary

Pensions analysis: The trustees of the Airways Pension Scheme (the Scheme) did not validly exercise the Scheme’s power of amendment when they conferred on themselves a power to review and at their discretion increase the annual rate of pension payable under the Scheme beyond what would otherwise be permitted under the Scheme’s pension increase rule, the Court of Appeal ruled by a majority of 2 to 1 in British Airways plc v Airways Pension Scheme Trustee Ltd, allowing British Airways’ appeal and reversing the decision of the High Court.