The PDA has advised its Boots members to contest the recent pension rule changes affecting their retirement plans.
In significant development, the Pharmacists' Defence Association (PDA) has advised its Boots members 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".
The issue centers around the alterations made to pension scheme rules without the adequate disclosure to scheme members or their representatives.
The PDA has drafted template letters to assist scheme members in response to undisclosed changes during a buyout process, sparking legal challenges and demands for transparency from Boots and scheme trustees.
Paul Moloney, National Officer of the PDA Union leading the campaign, expressed concern over the sudden withdrawal of the right to an unreduced pension from age 60.
"We have always maintained that members had a right under the rules to draw an unreduced pension from age 60," Moloney stated.
"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 Stage Two complaints, it was revealed that the rules indeed guaranteed the right to an unreduced pension at age 60 and was changed during the day of the buyout process.
The non-disclosure of these changes until now potentially breaches pensions legislation, raising questions about transparency and governance within the scheme.
"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," Moloney questioned.
"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."
Moloney also emphasised the potential reputational risk to Boots, stating, "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."
In response, the PDA Union has initiated several actions to address the situation:
- Writing to the Pensions Regulator to investigate the legality of non-disclosure.
- Urging Legal and General to pause the pension buyout process pending resolution.
- Demanding a meeting of scheme members as per the scheme's rules.
- Requesting an urgent meeting with Boots' CEO to seek an amicable resolution.
