To Switch Or Not To Switch: That Is The Question

The High Court's consideration of whether the rules of the Barnardo's Staff Pension Scheme allowed its trustees to adopt CPI in place of RPI, as the measure of inflation-proofing to be applied to members' benefits, provides further clarity on how difficult issues of this nature should be approached by trustees.

In the latest in a line of cases involving the switch from RPI to CPI, the High Court has considered whether the trustees of the Barnardo's Staff Pension Scheme (the "Scheme") had power under the Scheme Rules to replace RPI with CPI for the purpose of calculating revaluation of deferred pensions and increases to pensions in payment. The decision¹ turns on its facts but highlights the need to be very aware of the nuances hidden within scheme rules and how these should be interpreted.