The BT case focused on the 2016 Rules and 1993 Rules for members
in Section C (established after BT's privatisation). Both
sets of rules provided for inflation based increases of up to
5%. The 2016 Rules contain provisions envisaging a switch in
index, which say:
"The cost of living will be measured by the
Government's published General (All Items) Index of Retail
Prices or if this ceases to be published or becomes inappropriate,
such other measure as the Principal Company, in consultation with
the Trustees, decides."
The first question was whether this conferred a power on BT, or
on BT and the Trustee jointly, to determine whether RPI had become
inappropriate. Mr Justice Zacaroli ruled that whether RPI had
ceased to be published or become inappropriate was a question of
objective fact, with no power conferred on BT or the Trustee to
make that decision. It was only if one of these
"gateways" could be established that BT would have the
power to select (in
