Following a year-long review and consultation with Partners, the John Lewis Partnership Council - a body made up of 58 democratically elected representatives who represent the views of Partners across the business - 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, 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 a Partner pays into the scheme or not. It will also mean a more equal distribution of profits among Partners.
The Defined Benefit section of the pension will close and these changes are intended to take effect from April 2020. 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 £80 million in annual pension costs.
Partner feedback was essential in shaping the pension proposal, with over 10,000 Partners sharing their views over the last six months. The decision to make the changes was approved this afternoon by the John Lewis Partnership Council.