By Luke Tugby2019-05-16T06:03:00
The John Lewis Partnership is scrapping its defined benefit pension scheme as the group battles to cut costs.
The partnership, which owns the John Lewis & Partners department store business and sister retailer Waitrose & Partners, said the scheme linked to workers’ final salaries would be replaced by a defined contribution scheme.
John Lewis will match staff payments of up to 8% of salary. After three years of service, workers’ pension pots will get an additional 4% of pay from the company, whether or not they pay into the scheme themselves.
The changes, which come into effect from April next year, will impact the partnership’s nearly 84,000 workers and save the business £80m a year in pension costs.
Please sign in now if you have a subscription or are already registered with us.
Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.
Register today for a taste of our high-quality intelligence and enjoy:
Discover Retail Week register now
Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.