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.
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.