New BTPS indexation battle looms as trustees challenge planned scrapping of RPI inflation measure.
The CWU has welcomed the decision of the BT Pension Scheme (BTPS) Trustees to mount a landmark legal challenge to Government’s plans to ditch the time-honoured Retail Price Index (RPI) inflation measure.
Amid concerns the Government’s decision last November to scrap time-honoured RPI calculations in 2030 – replacing it with the typically lower Consumer Prices Index (CPI) measure that includes housing (CPIH) – will significantly lower some indexation rates after that date, the BTPS has joined forces with the Ford and M&S pension schemes in seeking a Judicial Review of the decision. Read more »
Trustees of the BT Pension Scheme Judicial Review of the Government’s decision to replace RPI with CPIH from 2030
The Trustees of the BT Pension Scheme, Ford Pension Schemes and Marks & Spencer Pension Scheme (“the Schemes”) have announced they are seeking a judicial review of the decision effectively to replace RPI with CPIH from 2030.
If the proposed Government reform is enacted it will significantly reduce the pension scheme assets.
Colleagues will recall that in 2017, BT asked the High Court to change the indexing from RPI to CPI for BT Pension Scheme Section C members. That High Court case was not successful; subsequently in January 2018 the High Court decision on the appeal also failed. The CWU made a submission on this issue on the 17th August 2020 to the joint HM Treasury and UK Statistics Authority Consultation on the Reform to Retail Prices Index Methodology. The detail of the submission is contained within LTB 455/20.
Update on your BTPS Options at Retirement and Introduction of Retirement Advice
BT Pension members should have received a copy of BT’s communications on BT Pension Scheme Options at Retirement and Introduction of Retirement Advice.
BT engaged the CWU in discussions with regards to options for implementing the splitting of the pre and post 2009 BT Pension Scheme. You will recall this formed an element of the 2018 Pensions Agreement. Although the process outlined is not how we envisaged the implementation, we are not opposed to individuals having flexibility in terms of their pension benefits.
Following filing of the claim for a Judicial Review on April 9, the Chancellor and UK Statistics Authority have until the end of the month to formally respond. The High Court will then decide whether permission is given for the claim to proceed. Members will be kept updated.
Below are the BTPS Trustees communications and the frequently asked questions.pension-1