Tesco forced to offer workers concessions
Tesco to provide staff with concessions after plans to close its defined benefit pension scheme triggered a flood of complaints from employees and activists.
Tesco: Photo by Gordon Joly, Flickr.
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
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