This appeal concerns the decision by the BBC to cap at 1% the part of a pay rise that would be used to calculate pensionable pay ("the Cap") in the final salary sections of the BBC Pension Scheme ("the Scheme") in circumstances where the BBC was faced with a multi-billion pound deficit in the Scheme. Mr Bradbury is a member of the BBC Philharmonic Orchestra.
We will not go into great detail here. Suffice to say, it will be of interest to any readers whose pension fund is in deficit or representatives working in the area of pensions. The manner in which the BBC consulted and made offers was at the heart of this decision that the BBC was not in breach of contract when attempting to plug the gap by imposing a Cap. Lady Justice Gloster, giving the lead judgement, found that:
"The respondent's conduct had to be assessed against the reality of the background that the respondent was faced with a multi-billion pound deficit in the Scheme and where the trustees, the unions and the respondent all agreed that something had to be done. The evidence demonstrated that the deficit in the Scheme was so substantial that, absent reform, the respondent would have needed to increase its contributions to the Scheme from the equivalent of 3.5% of the licence fee to around 10% of the licence fee. That would have been unaffordable and would have damaged its ability to maintain the quality and range of its services to the licence fee payer."
http://www.bailii.org/ew/cases/EWCA/Civ/2017/1144.html
Continue reading
We help hundreds of people like you understand how the latest changes in employment law impact your business.
Please log in to view the full article.
What you'll get:
- Help understand the ramifications of each important case from NI, GB and Europe
- Ensure your organisation's policies and procedures are fully compliant with NI law
- 24/7 access to all the content in the Legal Island Vault for research case law and HR issues
- Receive free preliminary advice on workplace issues from the employment team
Already a subscriber? Log in now or start a free trial