Boots pensions dispute: ‘Secret rule change documents’ discovered
The Pharmacists’ Defence Association (PDA) has announced it will “step up” its dispute campaign after discovering that Boots changed pension rules “on the day [a] buyout was announced”.
The pharmacy union has revealed plans to write to the pensions regulator after making the “unexpected discovery” that Boots changed pension rules “in secret”, it revealed yesterday (July 15).
Boots parent company Walgreens Boots Alliance (WBA) last year announced that it had offloaded Boots employees’ pension scheme to financial service provider Legal and General (L&G) in a £4.8 billion deal.
In December, the PDA launched the “first stage” of a formal complaints process about the deal following concerns that it could lead to a pension reduction for Boots employees wishing to withdraw their pension before they turn 65.
Read more: Boots pensions dispute: PDA launches ‘first stage’ of formal complaints process
But following complaints made by members, “it has become clear that…[pension] rules gave members the right to take an unreduced pension from age 60”, the PDA added.
“It has also become apparent that the trustees and company changed the rules on the day the buyout was announced to scheme members and this change withdrew this right,” the union claimed.
Read more: PDA ‘investigating’ concerns over Boots pensions buyout
“Until now, this significant information has never been released to members or to the union, potentially in breach of pensions legislation,” the PDA added.
“It begs the question why did the trustees, with the company’s agreement, need to change the rules, and in secret, if members did not have the right to an unreduced pension,” it said.
Commenting on the claims today (July 16), a spokesperson from Boots reiterated the multiple’s position that “all existing benefit entitlements continue to provided” while changes to “discretionary practice” have been communicated.
“Members have planned retirement”
Following the union’s “discovery of secret rule change documents”, PDA union national officer Paul Moloney said that the union has “a duty” on behalf of its members “to step up this campaign”.
“Our members have planned their retirement based upon what they understood the rule to be, an understanding that has now been proven to be correct,” he added.
“While our main focus continues to be assisting members to make complaints to the pension ombudsman, we will now be taking additional steps to protect our members’ pension rights,” he said.
Read more: Boots offloads pension scheme for £4.8bn amid fresh sales rumours
The union said these will include:
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Writing to the pensions regulator asking it to “investigate whether the non-disclosure of the rule change was lawful”
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Writing to the chief executive of Legal and General requesting that it “put the pension buyout process on hold until the position has been established” through the ombudsman or the courts
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“Writing to the trustees demanding they organise a meeting of scheme members”
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“Writing to the chief executive of Boots requesting an urgent meeting to explore ways of resolving this dispute”
Boots: “All existing benefit entitlements continue”
“The buy-in transaction with Legal & General last November secured the Boots scheme members’ benefits with a leading insurer”, a Boots spokesperson told C+D today.
“As required by the scheme rules, all existing benefit entitlements continue to be provided and changes to discretionary practice were actively communicated to the relevant members,” they added.
“The company and the trustees firmly believe this transaction was in the best interest of the membership,” they said.
They stressed that Boots “brought forward and made additional commitments worth almost £700 million to deliver the ‘gold standard’ level of security and protection for members’ benefits”.
Read more: Puss in Boots? Patients left outraged after branch ‘bans’ beloved cat
Earlier this month, Boots’ managing director Sebastian James announced he would be leaving the company to join ophthalmology clinic group Veonet as its group chief executive in November.
And Boots’ parent company WBA revealed that up to 69 more Boots UK premises could be closed, bringing the total number of branches tipped for closure to 650.
Meanwhile, last week patients branded Boots management “miserable gits” for banning social media star Willow the cat from its Didcot branch.
