Members have been advised to challenge the trustees’ decision to end the ability to take an unreduced pension from age 60 by submitting complaints through the scheme’s two-stage internal disputes procedure using template letters prepared by specialist pensions lawyers retained by the PDA.
Paul Moloney, the PDA Union National Officer leading this campaign, said, “We have always maintained that members had a right under the rules to draw an unreduced pension from age 60. This is our members’ understanding and, we believe, this should have been secured as part of the buyout process. The trustees have claimed an unreduced pension at 60 was in fact only possible at their discretion and therefore could not be safeguarded through the buyout. Scheme members have now been told they will have to wait a further 5 years until aged 65 before they can take an unreduced pension.”
Following the outcome of the Stage Two complaints submitted by members it has become clear that the PDA was correct, and the rules gave members the right to take an unreduced pension from age 60.
However, 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. This rule change has only just been disclosed within the Stage Two outcome letters members are beginning to receive. Until now this significant information has never been released to members or to the union, potentially in breach of Pensions legislation.
Paul Moloney said, “This is an unexpected discovery. 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.
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. We now have a duty on their behalf to step up this campaign. Whilst 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.”
The PDA is therefore taking the following action:
- Writing to the Pensions Regulator asking them to investigate whether the non-disclosure of the rule change was lawful, in accordance with the scheme rules and in keeping with the responsibilities of the trustees.
- Writing to the CEO of Legal and General requesting they put the pension buyout process on hold until the position has been established through the Pension Ombudsman or the courts.
- Writing to the trustees demanding they organise a meeting of scheme members, as permitted in the rules of the scheme.
- Writing to the CEO of Boots requesting an urgent meeting to explore ways of resolving this dispute without the need for lengthy legal challenges.
Paul also said, “Boots must realise there is the potential for reputational damage as a result of their actions. It is inconceivable that the company would treat its long-serving, highly skilled, and loyal pharmacists like this at a time when the role of pharmacists in delivering the nation’s health care has never been more important. We call upon the company to urgently meet with us to find a solution that protects our members’ rights and allows the buyout to proceed.”
Learn more
Access the PDA’s updates and communications to members regarding the Boots Pension Scheme changes here.
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