BT Group PLC (LON:BT.A) said it is considering filing an appeal against the High Court’s decision to reject the company’s bid to link pension payments to a lower measure of inflation.
The telecoms giant had sought court approval for its plan to switch the rate used to calculate its pension increases for 83,000 current and former workers from the retail price index (RPI) to the consumer price index (CPI).
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Since CPI is usually lower than RPI, the change would have helped BT to cut its pension deficit. The deficit stood at £9.3bn on 30 September.
“The High Court has handed down the judgment today which confirms that it is currently not possible to change from RPI to another index,” BT said in a statement on Friday.
“We are disappointed with the decision and will now consider the judgment in detail in order to decide next steps, including the possibility of an appeal.”
BT said it would continue to review future pension benefits under its defined benefit and contribution schemes with the aim of providing “fair, flexible and affordable pensions”.
It has completed a consultation with affected employees and is considering their feedback before concluding the review.
Shares fell 1.5% to 262p around the midday mark.