John Lewis’s pension scheme deficit has dropped by £361m from £840m to £479m, it has been reported.

The Partnership said the reduction was the result of a number of factors including, payment of deficit contributions, a change in allowance for discretionary pension increases, and excess investment returns, partly offset by a reduction in the real discount rate.

Following the scheme’s triennial valuation the Partnership and trustee have agreed a 10 year plan to eliminate the deficit, Reuters has reported.

As part of the plan the company has agreed to contribute £303m into the scheme, of which, £183m is due to be paid before the end of March 2017. The remaining £120m is due to be paid over the nine years to 31 march 2026.

The balance of the deficit is expected to be met by investment returns on the scheme's assets.

Share Story: