The John Lewis Partnership council has voted for changes to the company’s pension scheme that aim to provide “a more equal distribution of profits” among staff, and save £80m a year.
The body, which is made up of 58 democratically elected representatives who represent the views of staff – known as ”partners” – across the department store chain, voted and approved the changes to the pension scheme on 15 May.
The John Lewis Partnership currently operates a hybrid scheme that combines elements of “defined benefit” and “defined contribution” that are available depending on length of service.
The changes will give all 83,900 employees access to an improved “defined contribution” with matched contributions of up to 8% of pay and an additional 4% after three years’ service, regardless of whether a staff member pays into the scheme or not.
The “defined benefit” element of the scheme will close.
The changes are intended to take effect from April 2020.
John Lewis said in a statement: “The new pension scheme structure is designed to be more affordable, supporting the partnership’s strategy of improving its long-term financial sustainability, saving around £80m in annual pension costs,”