Future interests and fetters (BBC v BBC Pension Trust)

Article summary

Pensions analysis: This was an appeal by the sponsoring employer of the BBC Pension Scheme as to the proper interpretation of the fetter to the operative power of amendment which referred to the ‘interests’ of active members and specified that there will be no alteration or modification unless it is certified that such interests are not substantially prejudiced. The Court of Appeal dismissed the BBC’s appeal against the decision of Mr Justice Adam Johnson and confirmed that the ‘interests’ of Active Members extended to future service benefits. This was contrary to the BBC’s argument that the ‘interests’ protected are the legal entitlements and claims to benefits under the Scheme that have been earned by pensionable service already performed by an Active Member at the date of the amendment. Accordingly, the power of amendment is far less wide than the BBC contended for and potentially (although this is not a point which appears from the judgments) than those who drafted the rules anticipated. Written...