Pension Case Verdict
The House of Lords today announced a ruling in favour of National Power on the pension funds case. International Power is pleased to note that the judgment confirms National Power's use of surplus pension funds in 1992 and 1995 as lawful.
"I am delighted that the case is now resolved. This judgment now enables us to develop our own pension arrangements which will continue to meet our staff's pension entitlements." Said Peter Giller, Chief Executive Officer of International Power.
Notes to the Editors:
- The case arose from a complaint to the Pensions Ombudsman by two National Grid pensioners about the amount of pension surplus being used to improve benefits.
- Because of the similarity of the rules of the National Grid and the National Power schemes and the use of the surpluses which arose under both those schemes and the potential economic damage to National Power if the case went against National Grid, National Power applied to the courts to obtain a declaration as to the legality of their use of surplus pension funds in 1992 and 1995. National Power's application was then joined with National Grid's case.
- International Power retained liability for meeting any payments arising from the Court case (this was shown in the accounts as a contingent liability). As part of the National Power demerger agreement entered into in October 2000, Innogy undertook to indemnify International Power against 50 per cent of any liability arising from the House of Lords judgment and any subsequent High Court hearing.
Contact: Stephen Ramsay, International Power plc
+44 20 7320 8627