When supermarket giant Morrisons began planning for auto-enrolment, the previously low employee participation rate in its defined contribution (DC) pension scheme meant that its task was transformed from one of simple implementation to offering staff a whole financial education programme and new lower-risk pension scheme.
The programme, ‘Save your dough’, provides the retailer’s 135,000 employees with information on saving in general and for retirement. It includes in-store champions who are armed with further information on saving, two booklets about saving money and one on retirement saving, and a website.
A monthly employee survey found that 45,000 Morrisons employees have improved their finances in the past three to four months after using advice from the ‘Save your dough’ campaign.
In a further effort to encourage more staff to join its pension scheme, Morrisons decided to adopt a new cash balance pension arrangement.
The scheme will provide employees with a guaranteed pension pot at retirement, with risk shared between the organisation and the employee.
Since September, 10,000 employees have voluntarily opted into Morrisons’ pension scheme and a further 2,964 were auto-enrolled during October.