John Lewis to close 44,000-member DB scheme in bid to save £80m a year

Holly Roach
clock • 1 min read

The John Lewis Partnership has announced plans to close the defined benefit (DB) section of its combined pension scheme.

The parent company to John Lewis & Partners and Waitrose & Partners currently operates a hybrid scheme, combining its defined contribution (DC) and DB schemes.

The closure of the DB section, which has 44,000 active members, to future accrual was approved by the retailer's Partnership Council yesterday (15 May), following a year-long review and consultation.

The council comprises 58 democratically-elected members representing the views of partners across the business, and the decision was unanimous.

Changes to the scheme, which is chaired by Jane Newell, will take effect from April 2020 with all partners having access to an "improved" DC section of the scheme.

The DC structure will provide matching contributions of up to 8% of pay and an additional 4% after three years' service at the partnership, regardless of whether or not an employee pays into the scheme.

With the partnership having closed a number of department stores across the country after profit warnings, the DC scheme structure is designed to be more affordable, as well as to support its aim of improving financial sustainability. The change is expected to save around £80m in annual pension costs and ensure a more equal distribution of profits among partners.

More on Defined Benefit

Pension Schemes Bill to unlock potential £600bn superfund market

Pension Schemes Bill to unlock potential £600bn superfund market

LCP says simplified gateway tests open up superfund opportunity to half of schemes

Jasmine Urquhart
clock 16 June 2025 • 1 min read
Tender Watch: Trustees of Sumitomo scheme appoint First Actuarial

Tender Watch: Trustees of Sumitomo scheme appoint First Actuarial

First Actuarial appointed to provide actuarial and administration services

Professional Pensions
clock 09 June 2025 • 1 min read
FIF25: Opportunities with DB pensions

FIF25: Opportunities with DB pensions

No ‘one size fits all’ approach to endgame, with changing allocations within DB schemes

Jasmine Urquhart
clock 04 June 2025 • 1 min read
Trustpilot