22 04, 2015

Tesco staff pensions under threat as bosses post warning

2015-04-22T17:20:11-07:00April 22nd, 2015|Categories: Defined Benefit Plans|Tags: , , |

Tesco has written to its 300,000 staff outlining plans for the future of the supermarket’s pension scheme as it looks for ways to plug the estimated £5bn black hole and official consultation starts. In a letter sent to staff, seen by The Independent, Ruston Smith, the company’s pensions director, wrote: “In January we announced our plans to consult on closing our existing pension scheme and replacing it with a new scheme … These proposed changes would allow us to [...]

13 01, 2015

If defined benefit pensions didn’t exist, would we invent them?

2015-01-13T22:24:05-08:00January 13th, 2015|Categories: Defined Benefit Plans|Tags: |

Last week Tesco hit the headlines as the last FTSE 100 company to announce plans to close its defined benefit pension scheme to new employees, as well as closing the scheme to its 200,000 existing UK employees. Some people see this announcement as the final “end of an era” and look back nostalgically to a “golden age” of company pensions. But there never was such a “golden age”. Even at the peak, the percentage of private sector workers with [...]

7 01, 2015

Tesco could close pension scheme

2015-01-07T18:06:29-08:00January 7th, 2015|Categories: Pension Funding|Tags: , |

One of the last defined-benefit pension schemes in the private sector is under threat because of the crisis that has engulfed Tesco. Dave Lewis, chief executive of Tesco, is considering closing the retailer’s defined-benefit pension scheme to new members as part of his plan to shore up the company’s battered balance sheet. Tesco’s pension scheme is one of the biggest in the country. It has 350,000 members, including 203,000 active members of staff. The scheme is famously generous, offering a [...]

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