Alliance Boots has entered a consultation with staff in the UK about proposals to end its final salary pension scheme to existing members.

The health and beauty group is proposing to introduce a new defined contribution pension scheme and close its current scheme to active members.

These changes the company said would provide a competitive pension scheme on a more sustainable basis.

If the proposal goes through it would have no affect on benefits that have already been earned by employees through past service or those who have left the business.

Alliance Boots executive chairman Stefano Pessina said: “Having very carefully considered all options, the proposed pensions changes for UK employees is the right step to take. This will help protect the business from the effect of pension funding volatility and ensure the long-term sustainability of the Group’s UK retirement savings schemes. We have seen many large businesses, like ours, make this move and our aim is to encourage greater participation from all UK employees in a competitive and fairer retirement savings scheme.”