Please click here to see the recent press release distributed by the PDA Union.
As affected members are aware from our recent communication, the PDA Union has been taking advice from pension law experts regarding possible challenges to the closure of the Scheme and the subsequent loss of accrued benefits. The advice received is that the application in its current format does not allow you as employees to join the new scheme whilst reserving your rights to challenge the decision to close the final salary scheme. Our legal advice has therefore recommended that those members join the new scheme before the 25th June deadline as it is better to have the benefits from the new scheme than being left with nothing at all, however that you amend the application form at clause 8 stating “Subject to my letter attached to this form”. We suggest that members then include a short covering letter along the following lines:
Please find enclosed my completed application form for the Alliance Boots Retirement Saving Plan.
Although for the purposes of clause 8 of the application form I accept that I am not entitled to “double benefits” by accruing benefits under both the ABRSP and the Boots Pension Scheme in respect of my future service, you will be aware that The PDA Union (of which I am a member) has questioned the validity of the company’s closure of the Boots Pension Scheme. I therefore reserve the right to challenge the validity of the said closure and claim compensation (or any other available remedy) for the difference between my benefits under the ABRSP and those which I would have earned under the Boots Pension Scheme.
I also reserve the right to claim that my benefits accrued under the Boots Pension Scheme prior to 1 July 2010 continue to be calculated on the same basis as they would have done had I not been treated as having left service by reason of the transfer of my employment to another group company, including but not limited to having my pension calculated by reference to my salary when leaving the service of the Alliance Boots group (rather than as at 30 June 2010) and for any pension payable on my retirement from the group due to ill-health being paid on an unreduced basis.
It is entirely a personal choice as to whether or not members follow our advice and obviously independent financial and investment advice should be taken by everyone separate to any advice we provide.