Boots under fire for 'risky' pension deal
A former Boots finance chief has accused the firm of risking the future returns of its 20,000 pensioners by trying to change the way their plans are paid.
Alliance Boots has written to members of its retirement scheme offering a "pension increase exchange". Under the proposal pensioners can choose to give up future inflation-linked increases on pensions earned before 1997 in exchange for a one-off boost to pensions.
But the independent pension consultant John Ralfe, the former head of corporate finance at Boots, said yesterday: "The exchange is not neutral for pensioners – the company is giving only 60 per cent of the value of expected increases and keeping 40 per cent for itself. Even those pensioners who live to the average age will be worse off and those living longer than average will be much worse off."
He said the firm's pensioners were being asked to make an extremely difficult decision and claimed Alliance Boots "leaves itself open to misselling claims from pensioners and elderly widows who find themselves living too long".
The company said it was simply giving pensioners a choice and that it is not mandatory for anyone to accept the changes.
The battle for control of Stieg Larsson's £30m legacy
Geoffrey Macnab does not like the comedian's big screen debut
Look beyond the usual shows for the best festive telly
Michelle Nijhuis' daughter insists (s)he is, and she learnt a valuable lesson on gender in books
newsFormer soldier taped 33 of the animals to the floor and then stamped on them one by one
Robin Thicke named sexist of the year 2013
PAs cleared of fraud - and Nigella Lawson left reeling at 'ridiculous sideshow' of drug allegations and public dissection of marriage to Charles Saatchi
Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
Paul Walker death caused by speed alone
Apollo Theatre collapse: Scores injured after ceiling collapses in London's West End
- 1 Sun will 'flip upside down' within weeks, says Nasa
- 2 Christmas comes early: Justin Bieber is 'retiring from music'
- 3 Iain Duncan Smith leaves Commons food banks debate early
- 4 Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
- 5 Burglar steals video tapes of child abuse, hands them into police
- < Previous
- Next >
iJobs Money & Business
£Negotiable: Citifocus: High calibre individual with institutional client serv...
£120000 - £150000 per annum: Cornwallis Elt : Programme Manager, Strategy Lead...
£55000 - £120000 per annum: Pro-Recruitment Group: The Financial Services Tran...
£600 - £700 per day: Harrington Starr: Client based in West London is looking ...