Pensions: Limits On Trustee Powers To Amend The Scheme Rules

Amendments to its pension scheme rules which would have cost British Airways £12 million in increased pension payments were not permissible according to a recent decision of the Court of Appeal. The Trustees of the Airways Pensions Scheme (APS) had sought to give themselves the power to increase pension payments in the scheme rules. But the Court of Appeal ruled that the Trustees had acted for an improper purpose when amending the APS to include the ability to provide discretionary increases to pension payments.

It is unlikely to be the end of the story though as the Trustees are considering an appeal to the Supreme Court. APS members have been reported to be pushing for the Trustees to go ahead with the appeal – stating that it would a breach of trust not to appeal - and a meeting of members has been called to discuss the case.