Following a year-long review and consultation with its staff, the John Lewis Partnership Council - a body made up of 58 representatives - has voted for changes to the company’s pension scheme.
The partnership currently operates a hybrid scheme, combining elements of defined benefit and defined contribution, which are available depending on length of service. Following the changes, the business states that all 83,900 partners will have access to an improved defined contribution section of the scheme, with matching contributions of up to 8% of pay and an additional 4% after three years’ service, regardless of whether they pay into the scheme or not. It will also mean a more equal distribution of profits among partners, says the retailer.
The defined benefit section of the pension will close and these changes are intended to take effect from April next year. The business states that the new pension scheme structure is designed to be more affordable, supporting the partnership’s strategy of improving its long-term financial sustainability, saving approximately £80m in annual pension costs.