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.
The Pensions Regulator (TPR) has set out plans to use "new regulatory initiatives" with over 1,000 schemes as it aims to tighten its regulatory grip and boost member outcomes.
HM Revenue and Customs (HMRC) has announced it is delaying the provision of data that will enable pension schemes to confirm the guaranteed minimum pension (GMP) benefits to pay to members until the end of the year.
This week's top stories include an article on climate activists from Extinction Rebellion crashing the PLSA's local authority conference, and an in-depth piece on the Court of Appeal's ruling on the BIC UK Pension Scheme case.
Engagement in pensions is rising but there are still a number of barriers to overcome. Natanje Holt looks at the key issues that need to be tackled