Shop Direct Group proposes to close Littlewoods’ final salary pensions

Shop Direct Group, and sister companies Yodel and Transactis, have announced proposals to close the Littlewoods pension scheme to future accrual.

The shopping group has entered into consultations with employees over the proposed changes, which could see Littlewoods’ and the Shop Direct Group’s schemes closed to future service accrual from 31 December 2010.

The merger of Littlewoods and Great Universal Stores in 2005 resulted in the businesses operating the two schemes, both of which closed to new members several years ago.

Under the proposal, years of service to 31 December will be protected, and employees will be invited to join a stakeholder pension scheme.

Mark Newton-Jones, chief executive at Shop Direct Group, said: “We recognise this is a considerable step to take but we believe this proposal is the right way forward in terms of reducing exposure to the volatility of financial markets and providing more equitable pension provision for our colleagues.

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