In May this year the court considered in Hearn & ors v Younger & ors whether a resolution by the trustees to improve the rate of pension increases under the scheme, with the approval of the company, from 3% to 5%, without expressly stating that the improved rate of increase applied only to excess over GMP, had the effect of amending the rules to allow guaranteed annual increases on the whole of the pension, including the GMP element, after State Pension Age.
The court also considered whether the trustees and the company were bound to amend the rules to allow for the increase to GMPs as a result of representations made to scheme members in the scheme booklet and other communications.
The Judge, having considered all the evidence, concluded that the trustees and company had not amended the rules of the scheme to guarantee pension increases of 5% on the whole of a member’s pension including the GMP element. The evidence put before the court indicated that the trustees’ decision
