UK - Home improvement retailer Kingfisher is closing its final salary pension scheme to new entrants and increasing member contributions in a bid to cut costs.
The firm, which owns the B&Q do-it-yourself chain in the UK, will offer new staff a defined contribution scheme with equal 3% employee and employer contributions from April 1.
The 10,000 staff who are members of the Kingfisher Pension Scheme will see contributions rise from 5% to 7% to retain the 1/60th accrual rate.
Alternatively, members can opt to maintain a 5% contribution rate in return for a 1/80th final salary pension.
The £909m scheme reported a £157m deficit and increased pension costs of £44m last year.
Spokesman Nigel Cope said: “There were rising costs to the company, which meant rising contributions were required from staff. We found that in order to ensure the same level of benefit, some changes needed to take place.”
Staff who are part of the company’s existing DC scheme – the Kingfisher Retirement Trust – will transfer to the new DC arrangement, which the company said was a more “generous” arrangement.
The new DC scheme will be called the Kingfisher Pension Scheme – Money Purchase.
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