Earlier this year the supermarket said it would be closing its defined benefit (DB) pension scheme and would replace it with a defined contribution scheme.
It has now been forced to increase the maximum matching employer contribution from 5% to 7.5%, according to The Independent.
This takes the total pension benefit available to staff to 15%. For senior staff it will pay 1.5 times their contributions of between 6% and 10% of salary.
Workers previously enjoyed annual pension benefits worth up to 18% of their pay, with Tesco contributing around 11%.
The DB scheme’s deficit on an accounting basis increased 50% from £2.6bn last year to £3.9bn at the year-end, leading to Tesco agreeing to pay £270m in cash contributions each year.
UK pension advisory firm, Lincoln Pensions, released research in July showing that the pension funds of FTSE 350 companies are carrying £100bn in investment risk underwritten by their employer companies.
