BT will appeal last month's High Court ruling which barred it from swapping the inflation indexation used for one section of the BT Pension Scheme (BTPS).
BT confirmed its decision to appeal the ruling on 2 February, in its Shares and Performance Q3 results.
In a judgment handed down on 19 January, the High Court said trustees could not swap section ‘C' in the defined benefit scheme from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI).
The company had made the case to the High Court at the beginning of December in a bid to slow down the growth of the BTPS' deficit, in a move which would have impacted around 45,000 members.
The ruling came after sections ‘A' and ‘B' of the BTPS switched to CPI in 2010, which reduced the scheme's liabilities by around £2.9bn on an IAS 19 accounting basis. This change also impacted deferred members in section C.
Active and pensioner members in section C were not affected at the time, as there was some confusion as to how the government's public sector override interacted with the scheme's rules.
A BT spokesperson said: "We are disappointed with the decision and are now appealing. We continue to review the future pension benefits under our main defined benefit and defined contribution schemes in the UK, with the objective of providing fair, flexible and affordable pensions. We have completed a consultation with our affected employees and are considering their feedback."
The BT Pension Scheme is currently undergoing its triennial valuation for the period ending 30 June 2017, which is expected to show an actuarial deficit of £14bn. The company closed its consultation on closing the scheme to future accrual entirely on 17 January.
According to BT, it is "considering a number of funding options to address its deficit, including arrangements that would give the BTPS a prior claim over certain BT assets."
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