Pru wins High Court battle over pension increases

In a judgment handed down today Mr Justice Newey rules Prudential had not breached the duty of good faith by deciding in 2005 that, while discretionary increases would continue to be based on RPI, they would in the future be capped at 2.5%. He says this was because the decision was not irrational or perverse. In the judgment, he says: "Even if I had been persuaded the policy had not been followed in some or all of the subsequent years, I would not necessarily have accepted that the decisions taken were irrational or perverse or otherwise breached the obligation of good faith. "To m...