“The pensions ombudsman has begun an investigation into the decision by the trustees of Boots pension scheme to remove members’ option to retire on an unreduced pension at age 60,” the Pharmacists’ Defence Association (PDA) yesterday (June 18) announced.
In November 2023, Boots parent company Walgreens Boots Alliance (WBA) revealed that it had offloaded Boots employees’ pension scheme to financial service provider Legal and General (L&G) in a £4.8 billion deal.
Read more: BREAKING: Boots quadruples profits amid pension scheme sale
The PDA raised concerns over the buyout at the time, saying that the deal could lead to a pension reduction for Boots employees wishing to withdraw their pension before they turn 65, and by December the union had launched the “first stage” of a formal complaints process for its members.
In July, it revealed that it had made the “unexpected discovery” that Boots changed pension rules “in secret”.
Now – following “discussions with the relevant parties” – the ombudsman said that it has decided to take “a ‘lead case’ approach in respect of this dispute”.
“Core issues identified”
The ombudsman said that it made the decision “due to the number of members potentially affected by the issue”.
“Lead cases are an efficient way of dealing with a significant volume of complaints of a similar nature caused by the same incident,” it added.
“They can be accelerated through our processes to final determination, providing clarity for all parties as early as possible,” it said.
Read more: Boots pharmacists given pension update - as WBA sale reignites
The PDA said that it is supporting the lead case of “Mr F”, adding that “the parties agree that it covers core issues identified in the many unresolved complaints”.
But “the details of Mr F’s complaint and any underlying documents…are confidential,” it stressed.
Read more: Boots pharmacists given Dec 5 pensions ombudsman dispute deadline
The ombudsman “does not intend to accept any other complaints concerning this issue while the lead complaints are being investigated”, it added, warning that “any complaints made…during this time are unlikely to be accepted”.
However, employees with a complaint that “does not relate to the removal of the option to retire on an unreduced pension at age 60 can still raise this…in the usual way,” it said.
Boots to respond
“Now that the complaint is accepted by the [ombudsman] it is next for Boots plc – the employer – and Boots Pension Trustees Limited – the trustee – to respond,” the PDA said.
“Individuals can now follow progress with the complaint by accessing this page,” it added.
Read more: Boots pensions dispute: ‘Secret rule change documents’ discovered
It comes as Boots this month revealed that in 2024, the multiple more than quadrupled its annual profits thanks to its sale of the pension scheme.
“Excluding this one-off credit, operating profit decreased by £33m to £55m,” it said at the time.
