UK - Marks & Spencer is set to cap employees' annual increases in pensionable pay and change early retirement benefits in a bid to cut costs.
It also said it would be changing the early retirement benefits for members who joined the scheme before 1996. It did not give further details of these changes.
The firm said the changes to its pension scheme will come into force in October this year but it said it was not proposing to close the scheme to future accrual.
The scheme closed to new members in 2002.
The changes to the M&S scheme come as part of a cost cutting programme which will also see the closure of 27 stores and the loss of around 1230 jobs and save between £175m and £200m.
The firm envisaged the changes to the pension scheme would make up around 20% of the cost savings.
Marks & Spencer chairman Sir Stuart Rose said: "We are aware that the proposed changes set out above will be difficult for those members of staff impacted, but given that we expect challenging economic conditions to continue for at least the next 12 months we believe we are taking the right action to maintain the strength of our business."
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