Alliance Boots dissolves pensions fund
Alliance Boots, based in Nottingham, is planning to dissolve one of its two final salary pension schemes. The pharmaceutical company has confirmed that the Alliance UniChem UK Scheme Trust will be disbanded “to ensure long term security” of members’ pensions.
The company will now pay an insurance firm, Pension Insurance Corporation, to pay out the pensions to affected members.
The scheme merged with Boots four years ago to form the Alliance Boots partnership.
Alliance Boots said it has provided additional funding to enable the arrangement to take place. The scheme being dissolved is the smaller of the group's principal UK pension schemes.
In a statement, the company said: “The trustees have written to all members to explain the insurance arrangements, including the subsequent issue of individual insurance policies. Members’ benefits are otherwise unaffected and when all have been secured, the Alliance UniChem UK Scheme Trust will be dissolved.
“Alliance Boots continues to work with the trustees of its other pension schemes to ensure that members' pension obligations continue to be suitably funded and secured.”
