UK - A controversial clause in British Airways' Airways Pension Scheme was passed at a meeting with "non-authorised" management trustees, pensioners have been told.
Management trustees’ chairman Mervyn Walker has admitted that the clause – which grants BA the power to use surpluses to grant early retirement benefits – was added at a meeting where there was not a quorum and attended by “non-authorised” management trustees.
But Walker says that because trustees approved the minutes of the meeting – which took place in the 1980s – the clause was and is valid.
In a letter to the Association of British Airways Pensioners, he says: “The management trustees have been advised that in certain circumstances, the potential consequences of procedural errors may be ‘cured’ as a result of subsequent action (or inaction) of persons who are key to the decision making process.”
But ABAP chairman George Bell said it was a “diabolical liberty” that trustees were not asked if they approved of the clause when subsequent documents were signed off.
The ABAP plans to take its plea for the clause’s removal to the ombudsman and BA pensions manager John Birch believes the case is likely to end in the High Court.
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