John Lewis Partnership elected representatives vote to reform pension scheme
Wednesday 15 May 2019
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.
NOTES TO EDITORS
John Lewis plc is the principal trading subsidiary of the John Lewis Partnership with two listed corporate bonds on the London Stock Exchange.
John Lewis Partnership
The John Lewis Partnership www.johnlewispartnership.co.uk owns and operates two of Britain's best-loved retail brands, John Lewis & Partners and Waitrose & Partners. Started as a radical idea nearly a century ago, the Partnership is now the largest employee-owned business in the UK, with 83,900 employees who are all Partners in the business and share in its profits. The Partnership operates on strong democratic principles, which means that every Partner has a say in how the organisation is run. The business has annual gross sales of over £11.7bn, over 400 shops and a leading online business. Its commercial strategy is focused on differentiation rather than scale, through investment in innovation and Partner led service.