British Airways (BA) has reimbursed the trustees of its Airways Pension Scheme (APS) for nearly £12m in litigation costs over the last two years.
The airline giant paid out £6.3m to cover the trustees' legal costs in the 2015/16 year, and a further £5.5m in the 2016/17 year, according to the fund's annual financial statement.
The figure is likely to include costs arising from the ongoing legal battle over the APS trustees' decision to award a 0.2% discretionary increase above the Consumer Prices Index (CPI) to members in 2013/14.
An agreement is in place for BA to pick up almost all legal costs incurred by the APS trustees in relation to the litigation, and the £11.8m figure is roughly the same as the estimated compounded cost of awarding the 0.2% increase.
After the seven-week spat heard late last year, the High Court in May ruled in favour of the trustees' decision. However, the employer and trustees will renew their arguments in the Court of Appeal next May.
The continuing debate means the scheme is still yet to finalise its 2015 triennial valuation and has long missed its 30 June 2016 deadline.
Despite this, the report also revealed pensioners seeking to transfer out of the scheme have been given cash equivalent transfer values with a "partial allowance" for discretionary increases included.
Around £32m was paid out for individual transfers in 2016/17, up 247% since the prior year when the figure was £9m.
Both BA and the APS trustees declined to comment.
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