Wilkinson is to close its final salary pension scheme to future accrual as part of its plans to comply with the government’s auto-enrolment legislation.
The scheme, which has approximately 1,300 active members, will be closed from 31 July. A further 400 retired Wilkinson employees will not be affected.
The discount retail chain is to introduce a master trust defined contribution (DC) pension scheme from The People’s Pension, provided by B&CE.
Its 23,000 employees will have the opportunity to receive up to a maximum 10% matched pension contribution from the employer.
The changes are intended to introduce a consistent and common approach, which should be attractive to all employees and will be in everyone’s long-term interests.
A spokesperson for the retailer said: “We have carried out a comprehensive review of pension provision and worked hard to ensure that everyone will have the opportunity to build a strong pension for their retirement.
“The closure of the [final salary scheme] to future accrual is a necessary part of this process and we believe this change is an essential, prudent and balanced move to avoid the risk of problems encountered by many final salary schemes in the UK.”
