May 19, 2017
British Airways loses landmark legal case against pension trustees
British Airways lost a landmark legal challenge over a decision by its pension scheme trustees to make additional payments to thousands of retired airline workers. In a 164-page judgment published on Friday, the UK High Court dismissed a wide-ranging legal action initiated by BA in 2013, against the trustees of its Airways Pension Scheme, which has 26,000 members. "There are 26,000 members in this pension scheme, 98 per cent of whom are already retired and on far more generous pensions than succeeding generations of British Airways employees." On Friday, the trustees said "It may be necessary to wait until the legal position becomes clear" before the 2013 discretionary increase can finally be paid. "The APS is very unusual in giving trustees power to change scheme rules without BA's agreement, allowing the trustees to award discretionary increases," said John Ralfe, an independent pension consultant.
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