32. The paper also dealt with the question of how to fund the LPI increases, the cost of which was said to be about £70m. The paper said that the Scheme had a funding surplus which would more than cover the cost. Solicitors for both the Trustee and the Principal Employer had said that the latter could probably ask members to cover the cost of LPI increases but said that for employee-relations reasons the Principal Employer had decided that the cost of LPI should be borne out of the surplus and thereafter by the Principal Employer.

This "could probably" has never been tested.  Because most other companies followed good practice at the time and already delivered increases they did not suffer a cost when the increases were made mandatory by regulation.