PDA members have sought support from their union following the recent communications from the trustees of the closed final salary pension scheme run by Boots, known as the “Boots Pension Scheme”. The trustees’ decision to secure a buy-in of the benefits through an arrangement with Legal and General included the removal of the option to take a full pension from age 60, PDA members who have benefits in the Scheme and who have concerns about the change have the right to use the disputes procedure at Boots to complain about the removal of the option to retire at 60 without a reduced pension.
Paul Moloney, PDA Union national officer explains why members may want to do this.
“We have considered, with our advisors, the claim by the trustees of the scheme that the option to take an unreduced pension from 60 was discretionary and not a right and believe there is insufficient evidence to fully support this claim. We are therefore questioning whether this option should have been secured as part of the buy in and not ended with immediate effect.
Instead, we believe benefit statements issued to members, at the very least are contradictory, and clearly state that a full pension will be payable from a member’s 60th birthday, with no reference to this benefit being discretionary and therefore subject to a regular review by the trustees. Instead, the benefit statements give the impression that an unreduced pension from 60 is a right with no indication that retirement plans should not be based on the benefit statements.
Although we recognise the advantages a buy-in can bring to the overall security of benefits it is important that it is done correctly. We believe there is sufficient doubt over the claim that the unreduced pension was discretionary and can be ended with the buy in. Members can challenge this through the scheme’s disputes procedure initially and if unresolved through the Pension Ombudsman who is there to resolve matters such as this.”
The PDA held an online meeting of over 100 members affected and will now be sending template complaint letters setting out concerns regarding the discretionary nature of the benefit and the way it has been communicated to scheme members over the years. The templates are for PDA members to complete and submit to the scheme administrators as the first stage of a formal complaint.
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