In June 2018, the Trustee wrote to those members who could potentially be impacted by High Court proceedings brought by BT against HM Treasury (HMT). The proceedings challenged the validity of a decision by HMT as to the method it would use to make certain increases to pensions in payment for public sector workers who reach State pension age between 6 December 2018 and 5 April 2021. HMT’s chosen method means that the same pension increases would also apply to Section B members reaching State pension age in this period. BT argued that HMT did not properly consider alternative methods which would not have this effect.
The High Court has now published its judgment and has determined that the decision made by HMT was valid. This means the Trustee will continue to pay pension increases for these Section B members in line with legislative increase requirements for public sector workers as set out in the Rules of that Section.
It is possible BT may seek permission to appeal the decision and the Trustee will continue to provide updates if there are any further developments.