Alliance Boots is leaving itself open to mis-selling claims from its thousands of pensioners after it offered to change the way their plans are paid, its former finance chief said yesterday.
The company has written to members of its retirement scheme offering a "pension increase exchange". Under the proposal, members would be handed a one-off increase to the value of their pensions in place of future inflation-linked increases. But John Ralfe, the former head of corporate finance at Boots and now an independent pension consultant, said yesterday: "The exchange is not neutral for pensioners - the company is giving only 60% of the value of expected increases and keeping 40% for itself. "Even those pensioners who live to the average age will be worse off and those living ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
