In December 2017, we sought a decision from the High Court as to whether it would be possible to change the index used to calculate pension increases paid in the future to members of Section C of the BT Pension Scheme (BTPS) from the Retail Prices Index (RPI) to another index.
The High Court has handed down the judgment today which confirms that it is currently not possible to change from RPI to another index.We are disappointed with the decision and will now consider the judgment in detail in order to decide next steps, including the possibility of an appeal. The relevant index for pension increases for members in Sections A and B of the BTPS remains unchanged as the Consumer Price Index (CPI).
Other pension matters
The triennial valuation is proceeding and constructive discussions continue with the BTPS Trustee and we still expect to complete the valuation in the first half of the 2018 calendar year.
We continue to review the future pension benefits under our main defined benefit and defined contribution schemes in the UK, with the objective of providing fair, flexible and affordable pensions. We have just completed a consultation with our affected employees and are now considering their feedback before concluding the review.
The membership of the BTPS as at 31 March 2017 is analysed below:
|Sections A and B||11,500||25,500||176,000||213,000|
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