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Pension funds

BT Pension Scheme nixes plan to switch indexes for benefit calculations

BT Pension Scheme, London, will not change the index it uses to calculate pension benefit increases to participants in one of its sections, it said in a statement on its website following a decision Tuesday by the U.K. Court of Appeal.

BT appealed an earlier decision by the High Court of Justice, which ruled it couldn't use the consumer price index over the retail price index to calculate benefit increases for 83,000 participants in Section C of the 50 billion ($64 billion) pension fund, which includes workers who joined April 1, 1986 to March 31, 2001.

The appeals court upheld the High Court's January decision that determined "it is currently not possible to change from RPI to another index," according to BT pension fund's website. BT asked the High Court how to interpret the fund's rules regarding its ability to change indexes in 2017.

Pension increases for participants in Sections A and B of the fund — those who joined either before Dec. 1, 1971 or from Dec. 1, 1976 to March 31, 1986, respectively — are calculated using the consumer price index.

BT is considering the judgment in detail to decide its next steps, the statement said.