Reports claimed that another BA trustee has withdrawn from the scheme after decisions have been taken to shift RPI to CPI for further pension increases.
Pocock has claimed that it was not the first time such decisions were taken by the trustee board. He also claimed that he cannot support the board for this decision.
He said: "In my view, the trustees have an obligation to fulfil those expectations if it is legally possible to do so. The fund has substantial RPI-linked assets, including a contract which insures 20% of pensioner liabilities and provides an RPI-linked income stream.”
Pocock mentioned that fund shortage was the main reason which has forced BA to take such decisions.
Now, the UK government would be considering the Consumer Price Index to set the Annual Review Column.
As many other public sectors schemes, BA have mentioned pension under APS and NAPS which again follow government’s position.
The trustee resigned because of the fact that the whole decision was not giving the exact answer. The decision taken by the government was unsupportive and such wrong decisions should not be supported. Many members urged the government for changing the policy.