Three judges have claimed that the government's handling of workers deprived of their occupational pensions was "irrational".
The parliamentary ombudsman found that the government had issued leaflets which claimed occupational pensions were safe, despite the fact there was only a 50 per cent chance of members receiving the full amount if their employers went bust, reports the Guardian.
Commenting on the findings, Lord Justice Wall said: "The complainants ... were decent, hardworking people who, through no fault of their own, had been - or were at serious risk of being - deprived of that for which they had worked throughout their lives, namely a modestly comfortable retirement."
The Department for Work and Pensions has stated it will decide whether to approach the law lords to hear an appeal after the court refused an appeal to the House of Lords, the report continues.
Leader of the Pensions Action Group Dr Ros Altmann expressed dismay that the government would consider spending more money to have the Lords hear the case.
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