Morrisons plots pension scheme closure
AROUND 8,000 workers at troubled supermarket chain Morrisons could be affected by plans to close two salary-linked pension schemes.
The Bradford-headquartered grocer sent out letters to staff last week consulting them on the change. It is thought the move could save the group between £5m and £10m a year.
The news follows that of rival Tesco, which also announced it would be closing its own defined-benefit scheme.
Morrisons said the proposed changes are subject to consultation and if they go ahead would mean a “harmonisation” of the group’s pension arrangements.
The retailer is proposing that two CARE schemes, which have been closed to new employees for a number of years, will close to future accrual.
If the proposals go ahead, then the benefits that members have built up will remain unaffected. Future benefits will be offered through Morrisons’ alternative pension arrangements which are available to all staff within the group.
Emily Lawson, group HR director for Morrisons, said: “This proposal is intended to provide fairer pensions benefits to all colleagues, ensuring that those doing the same role primarily have access to the same benefits.
“These are only proposals at this stage. Before any final decisions are made we will be entering into a consultation process with affected colleagues and their representatives.”
Morrisons currently offers three defined benefit pension schemes: Morrisons Retirement Saver Plan, the Wm Morrison 1967 Pension Scheme and the Safeway Pension Scheme. The proposal is to close the Wm Morrison 1967 Pensions Scheme and the Safeway Pension Scheme to future accrual.
The news comes just weeks after chief executive Dalton Philips announced he was to leave after the board ran out of patience waiting for his innovations and £1bn price investment programme to deliver growth.
Last month its chairman Andrew Higginson warned it will take up to five years to get the supermarket chain back “to full health” as it looks to emerge from a torrid couple of years’ trading.
