// John Lewis Partnership elected representatives vote in favour of pension scheme reforms
// Defined benefit section of the scheme has been closed
// Defined contribution section enhanced
The John Lewis Partnership has adapted reforms to its pension scheme, which aims to provide “a more equal distribution of profits” among staff.
The John Lewis Partnership Council – a body made up of 58 democratically elected representatives who represent the views of employees across the retail company – voted and approved the changes to the pension scheme this afternoon.
The parent company of John Lewis and Waitrose currently operates a hybrid scheme, combining elements of defined benefit and defined contribution, which are available depending on length of service.
Following today’s changes, all 83,900 employees will have access to an improved defined contribution section of the scheme, with matching contributions of up to eight per cent of pay and an additional four per cent after three years’ service, regardless of whether a staff member pays into the scheme or not.
Meanwhile, 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,” John Lewis Partnership said in a statement.