Tesco is considering closing its defined benefit pension scheme to new members, because of the retailer’s recent financial crisis.
Chief executive David Lewis is said to be considering closing the pension to new members as he tries to come up with ways to improve the company’s balance sheet, the Telegraph reported.
The scheme is one of the biggest in the country and one of the last defined benefit pension schemes in the private sector. It has 350,000 members.
The retailer, however, is nursing a £3.4bn deficit as sales have fallen and it is understood that Lewis is mulling an overhaul as he looks at ways to improve the business’s finances.
On Thursday the retailer will update the City on its Christmas performance, and is also expected to announce the sale of assets and cost-cutting measures. The assets being considered for disposal include online streaming service Blinkbox, Tesco Bank, Tesco’s Asian operations and Dunnhumby, the analytics tool behind Clubcard.