M&S closes DB pension scheme to future accrual

M&S closes DB pension scheme to future accrual

Retail giant Marks & Spencer has told active members of its defined benefit (DB) scheme that they will no longer be able to accrue addtitional benefits from April 2017.

In a statement on 2 September, the retailer said members would be offered the chance to join the company’s defined contribution plan instead.

As part of the deal, members will maintain a death-in-service benefit of four times their salary.

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They will also receive a compensatory cash supplement for three years, rather than the two years initially proposed.

The announcement was part of a pay and pensions consultation that resulted in an hourly wage increase for shop assistants of 14.7 per cent to £8.50, and £9.60 in London; but also the scrapping of Sunday premium payments.

M&S is one of 29 of the 100 companies in the FTSE 100 whose DB scheme is in surplus.

As of 31 March 2015, the scheme had a surplus of £204m, making it 102 per cent funded.