UK - The former trustees of the BA Airways Pension Scheme have vowed to take the scheme to court over its controversial move to stop paying pensions in-line with RPI inflation.
Mike Post (pictured), a former BA trustee who resigned in April over the decision to switch to Consumer Prices Index inflation, said it was “100% likely” the scheme’s decision to use CPI would end up before a judge.
He slammed current APS trustee chairman Paul Spencer for failing to take the inflation decision before a judge and said hostile legal action was on the table to reverse the CPI switch.
“Ultimately we will end up in court, we will take them to court,” Post said.
“Paul Spencer is being disingenuous because the trustees have taken a decision to go to court whatever the outcome of their deliberations on the CPI and RPI issue. He’s clearly going back on that.
“It’s a 100% likely we will go to court, it’s merely the route we get there,” he added.
The legal dispute centres on a decision made at the APS trustee meeting on 3 February on whether to take the decision before a judge.
APS trustee chairman Paul Spencer said it was decided the decision would remain outside the courts after consulting a QC who said the trustees had the power to switch to CPI.
He said: “There is absolutely no doubt at all from leading council that we have the right as trustees to do what we believe is right on behalf of the members.
“There is no question at all that the rules at the moment say we can pay CPI. There is nothing to take to court.”
Former trustees Cliff Pocock and Graham Tomlin, who resigned from the board in April, back Post.
“The trustees need court approval for what they’re doing because otherwise they’re exposing themselves they haven’t done a formal investigation to see whether CPI was a suitable index,” Post added.