John Lewis Partnership has seen its defined benefit (DB) pension scheme deficit rise by £86.5 million over the period between 26 January and 27 July 2013.
In its Interim financial statements for the half year ended 27 July 2013, the retailer reported that the total accounting pension deficit at that date was £908.6 million.
The accounting valuation of pension fund liabilities increased by £177.3 million to £3,973.3 million, while pension fund assets increased by £90.8 million to £3,064.7 million.
The John Lewis Partnership also reported that it has adopted an IAS 19 revised strategy to its pension deficit, which changes the basis on which pension finance costs are recognised in the income statement.
A pension scheme review, which was announced in March, is currently underway and is expected to be concluded by the end of 2014, following consultation with employees.
It’s a disgrace that this will affect people that no longer work at John Lewis. Get rid of the bonus.
Anonymous – this has no bearing on those who no longer work there ! Pensions schemes often run at a deficit, especially DB schemes as the amount you paid in (and the company paid in for you) falls far short of the amount which will be paid out.
I am sure you enjoyed the bonus when you were there – why should those still working have it removed ?