LONDON, 2015-2-2 — /EPR Retail News/ — In March 2013 the John Lewis Partnership announced that it would review its pension scheme to ensure that it remains both fair to Partners and affordable to the Partnership. After considerable discussion and debate, the Partnership Council voted unanimously in favour of the final proposal.
The final proposal has since been reviewed and agreed by the Partnership Board and the Chairman. The changes outlined in the proposal will take effect for new Partners from April 2015 and for existing Partners from April 2016.
The final proposal is to adopt a hybrid Defined Benefit (DB)/Defined Contribution (DC) scheme with the central elements being:
- To continue to offer a non-contributory Defined Benefit scheme based on a Partner’s final salary, but at a reduced accrual rate of 1/120th for future service from April 2016
- The Defined Contribution section of the scheme, in which Partner contributions are matched by the Partnership up to 4.5 per cent of contractual basic pay, will be extended from three years to the full length of a Partner’s service. Partners who are members of the Partnership Defined Benefit scheme will also receive 3% of their contractual basic pay each month on a non-contributory basis toward their Defined Contribution pension.
- To increase the waiting period before joining the DB section of the scheme for new Partners from three years to five years from April 2015.
Nat Wakely, Director, Pensions Benefit Review said:
‘The John Lewis Partnership pension is a defining element of our business and this decision will ensure that it remains so in a way that is fair and affordable.
‘The Council’s unanimous vote in favour of the final proposal was the culmination of a very thorough process, involving every area of the Partnership and concluding in a decision that we took together in an open and democratic way.’
For further information please contact:
John Lewis Partnership
Andrew Moys, Director of Communications
Telephone: 020 7592 6292
Citigate Dewe Rogerson
Simon Rigby / Jos Bieneman
Telephone: 020 7638 9571