John Lewis Partnership Plc (“the Partnership”) has reached agreement with the Partnership's Pension Scheme Trustee (“the Trustee”) on the terms of the triennial valuation.
As at 31 March 2019, the valuation of the Partnership’s UK defined benefit pension scheme showed a deficit of £58m. This compares to a deficit of £479m at the previous valuation as at 31 March 2016. The reduction in deficit is the result of a number of factors including contributions of over £250m towards the deficit, and the closure of the defined benefit section of the scheme to the accrual of future benefits.
The Partnership and the Trustee have agreed a six year plan to eliminate the deficit with annual cash contributions of £10m, with the first payment due in May 2020.
About the John Lewis Partnership Pension Scheme:
Prior to the closure of the defined benefit section of the scheme on 1 April 2020, the Partnership operated a hybrid pension scheme, combining elements of defined benefit and defined contribution, which were available depending on length of service. Following the changes on 1 April 2020, Partners now 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.
John Lewis plc makes payments on behalf of the Partnership to the pension scheme, and further support is provided by Waitrose Ltd and John Lewis Properties plc.