Members of the Boots Pension Scheme have raised concerns after the scheme's buy-in with Legal & General (L&G) removed the option to take a full pension from age 60, The Pharmacists' Defence Association (PDA) has revealed.

The union confirmed that its members have sought support after recent communications from the trustee of the scheme explained that the decision to secure a buy-in with L&G included the removal of the option to take a full pension from age 60.

In particular, the union argued that there was “insufficient evidence” to fully support the trustees’ claim that the option to take an unreduced pension from 60 was discretionary and not a right.

“We are therefore questioning whether this option should have been secured as part of the buy in and not ended with immediate effect,” PDA Union national officer, Paul Moloney, explained.

"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.”

And whilst Moloney recognised the potential advantages a buy-in can bring to the overall security of benefits, he argued that "it is important that it is done correctly".

Given this, the PDA pointed out that 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.

“We believe there is sufficient doubt over the claim that the unreduced pension was discretionary and can be ended with the buy in,” Moloney continued.

“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.”

To help members with this, the PDA confirmed that it will 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 Boots Pension Scheme has been contacted by Pensions Age for comment.

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