Tesco’s chief executive Dave Lewis is thought to be considering closing the retailer’s defined benefit scheme to new members, as part of his plan to turnaround its fortunes following last year’s profit scandal.
The Telegraph has reported that the pension scheme, which has approximately 350,000 members including 203,000 active members of staff, has a £4.3m deficit. According to the company’s latest annual report, it cost Tesco £543m in the last financial year to service the pension scheme and its obligations under the defined benefit pension scheme are more than £11bn.
It is expected that the supermarket chain could announce changes on Thursday (January 8), when Lewis will deliver a Christmas trading statement. City analysts expect the retailer to announce a series of cost-cutting measures during the update.