Pensions

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Big day for BT pension fund holders

Today Programme

BBC Radio 4

BT Tower
BT

Around 80,000 BT pensioners will find out today if the company can switch the way their annual increases in payments are calculated.

At the moment the pension uses Retail Price Index (RPI) measure. It wants to change it to the lower Consumer Price Index (CPI) measure.

Earlier this year the High Court said there couldn't be a switch - BT appealed and today we hear the Court of Appeal's verdict.

According to Daniela Silcock, Head of Policy Research at the Pensions Policy Institute, the move could save BT £2bn straight away and then more over time.

BT is keen to win the appeal as it its pension deficit has "sky-rocketed" to £14bn, she said.

However, she quotes an estimate from the union Unison which said the switch will cost a pensioner around £12,000 over the lifetime of the pension.

Women's state pension changes to get legal review

Kevin Peachey

Personal finance reporter

A campaign group representing women born in the 1950s has won the right to a judicial review into changes to their state pension age.

A High Court judge has granted a review into how the government handled the raising of the pension age from 60.

Joanne Welch, from the BackTo60 group which brought the case, said she was "absolutely delighted" with the ruling.

The Department for Work and Pensions (DWP) said it would not comment on live legal proceedings.

For more than 60 years - up until 2010 - women received their state pensions at the age of 60, but that has been rising ever since.

Some women born in the 1950s, who had been expecting to get a state pension at the age of 60, claim they did not know about plans to delay their pensions.

Read on.