Sainsbury’s has launched a two month consultation with its staff about proposed changes to its defined benefit pension scheme.

In 2002, Sainsbury’s DB scheme was closed for new entrants, however the latest proposed changes are linked to future accrual. Proposals have been communicated through face-to-face briefings, letters and also through a team of pension experts.

Sainsbury’s stated that as with Boots, Aviva, Argos and Kingfisher, it is looking at the way it offers pensions to its staff as a result of lower investment returns and the difficulty of estimating how much workers pensions will cost in total.

A Sainsbury’s spokesperson stated: “The proposal affects less than 14,800 of our 150,000 colleagues right across our business. These proposed changes do not break any contractual arrangements. Proposed changes will ensure that pension arrangements for all our colleagues are fair and sustainable for the future.

“All pension benefits that our current and former colleagues have built up in this scheme will be protected, and we will be working closely with those affected to explain the proposed transition to our defined contribution arrangements, in which 81,000 of our colleagues are already saving for their retirement.”

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