Andrew Stafford QC in BBC pension fund case

04.02.2012

Andrew Stafford QC recently acted in an appeal to Patten J concerning the operation of the BBC pension fund. The appeal in the case of Bradbury v BBC was from the Pensions Ombudsman & concerns the operation of the South West Trains doctrine & Section 91 of the Pensions Act 1995.

 Mr. Bradbury is a member of the BBC’s final salary pension scheme.  He complained to the pension ombudsman about the BBC’s attempt to link his annual pay rise to his final pensionable salary.

 He was offered a 2% pay rise by the BBC if he agreed that, then and for the future, only a maximum of 1% of any pay rise would “count” as basic salary for the purposes of his final salary within the final salary pension scheme.  If he refused, then he would get no pay rise. 

Mr. Bradbury contends that the definition of “basic salary” was defined in the pension scheme itself, and that the BBC’s offer was an invalid attempt to circumvent the pension scheme rules.  In support of his argument, Mr. Bradbury relied on the recent decision of Arnold J in IMG in which the unlimited breadth of the decision in South West Trains was questioned.  It was also contended that it was impermissible by reason of the rule against the alienation of pension rights found in Section 91 of the Pensions Act 1995. 

Judgement is expected to be delivered by Patten J in the near future and will be available on the Littleton website as soon as it is publicly available.  Once judgment has been delivered, it is likely that a number of talks will be given to discuss the implications of what is bound to be a thoughtful and important judgment

The case is one of a growing number of cases in which Members of Littleton are instructed to advise/ appear in involving pensions. These disputes appear to be arising with growing frequency as a result of pressure on final salary schemes. Andrew is able to rely upon many years of dealing with pensions cases.  He is one of a number of Members with specific pensions experience, full details of whom can be acquired by contacting our clerks.