BT, which has one of the largest private sector pension schemes in the UK, has lost a court appeal to switch the way annual increases in payments are calculated for its 80,000 pension scheme members.
— Eric Vanderburg (@evanderburg) December 4, 2018
The telco, which has already lost a case a High Court on the same issue, had asked the Court of Appeal to overturn the earlier ruling.
At the moment, the pension uses Retail Price Index (RPI) measure. BT, however, wanted to switch to a different cost of living index for calculating increases to pensions paid in the future.
According to the trade union Prospect, if BT’s had been successful the benefits of these employees would have fallen by around £120m, with an average loss of about £15,000 per member.