Asda has axed its final salary pension scheme in a move that affects 3,800 managerial staff.
The move comes after the scheme’s deficit almost doubled in just nine months, from £210m to £400m.
The supermarket closed the scheme to new members in 2005. Its existing members will be switched to the retailer’s defined contribution scheme and offered a one-off payment worth around a quarter of their annual salary.
“We are by no means the first [company to close its final salary scheme] and we certainly won’t be the last,” an Asda spokesman said.
“We need to address the deficit. It has grown significantly and it is important that we protect the business in the future.”
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