Sainsbury’s looks to close DB pension scheme

Sainsbury’s has launched a two-month consultation with staff on proposals to close its defined benefit (DB) pension scheme to future accrual.

The scheme was closed to new entrants in 2002. The proposed changes will affect less than 10% of the supermarket chain’s 150,000 UK employees.

Sainsbury’s also offers all its employees access to a stakeholder defined contribution (DC) pension scheme, and offers senior and middle managers access to a self-invested pension plan (Sipp).

A spokesperson at Sainsbury’s said: “In line with many other organisations and in light of changes to pensions over the last few years, we are starting a two-month consultation about proposed changes to our defined benefit pension scheme.

“The proposed changes will ensure that pension arrangements for all of our [employees] are fair and sustainable for the future.

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“The proposals involve the closure of the defined benefit pension scheme for future accrual, which has been closed to new starters since 2002.

“All pension benefits that our current and former [employees] have built up in this scheme will be protected, and we will be working closely with those affected to explain the proposed transition to our defined contribution arrangements, in which 81,000 of our [employees] are already saving for their retirement.”