British Telecommunications Plc v (1) BT Pension Scheme Trustees Ltd & Anor [2018] EWHC 69 (Ch) (19 January 2018)

British Telecommunications Plc v (1) BT Pension Scheme Trustees Ltd & Anor [2018] EWHC 69 (Ch) (19 January 2018)

The determination of whether RPI has become inappropriate under the 2016 Rule is an objective question for the court, not a discretionary power vested in BT or the Trustee. Events prior to 5 April 2016 can be considered in determining if RPI has become inappropriate. There is no requirement that any power to determine RPI's appropriateness must be exercised within a reasonable time or that such a power lapses if not exercised. For members who left service before 2002, the 1993 Rule applies, as transitional provisions in later rules did not displace the application of the rule in force at the time of leaving.

Citation
[2018] EWHC 69 (Ch)
Parties
Claimant: British Telecommunications plc; First Defendant: BT Pension Scheme Trustees Limited; Second Defendant: Linda Bruce-Watt (Representative Beneficiary)
Jurisdiction
England and Wales
Judgment Date
19 January 2018
Procedural Posture
Part 8 Claim (pension Scheme Construction) / First Instance Judgment
Outcome
Declarations granted on construction of the rules; claim substantially dismissed as to BT's preferred construction.
Legal Topics
Construction of Pension Scheme Rules, Indexation of Pension Benefits, Fiduciary Duties of Trustees and Employers, Implied Terms in Pension Schemes, Transitional Provisions in Pension Rules
Pensions Law Trusts Law Contract Law Construction of Pension Scheme Rules Indexation of Pension Benefits Fiduciary Duties of Trustees and Employers Implied Terms in Pension Schemes Transitional Provisions in Pension Rules

Case Brief

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Parties

British Telecommunications plc

Claimant

BT Pension Scheme Trustees Limited

First Defendant

Linda Bruce-Watt (Representative Beneficiary)

Second Defendant

Procedural Posture

Part 8 Claim (pension Scheme Construction) / First Instance Judgment

Legal Issues

  1. 1 Whether the determination of RPI becoming inappropriate under the 2016 Rule is an objective question or a power vested in BT or the Trustee
  2. 2 Whether events prior to 5 April 2016 can be considered in determining if RPI has become inappropriate
  3. 3 Whether failure to exercise a power to determine RPI's appropriateness within a reasonable time causes the power to lapse

Ratio Decidendi

The determination of whether RPI has become inappropriate under the 2016 Rule is an objective question for the court, not a discretionary power vested in BT or the Trustee. Events prior to 5 April 2016 can be considered in determining if RPI has become inappropriate. There is no requirement that any power to determine RPI's appropriateness must be exercised within a reasonable time or that such a power lapses if not exercised. For members who left service before 2002, the 1993 Rule applies, as transitional provisions in later rules did not displace the application of the rule in force at the time of leaving.

Court Disposition

Declarations granted on construction of the rules; claim substantially dismissed as to BT's preferred construction.

Orders

  • Declaration that the determination of RPI's appropriateness under the 2016 Rule is an objective question for the court.
  • Declaration that events prior to 5 April 2016 can be considered in determining if RPI has become inappropriate.