Monday, July 02, 2012

Co-op keeps DB pensions for 100,000 staff

Well done to the Co-op for keeping open its Career Average Defined Benefit Pension scheme for its 100,000 employees. 40,000 of whom are not members at the moment and are eligible for auto-enrolling. Gary Dewin, director of pensions for the group, said:“The scheme is a fantastic recruitment and retention tool. We wanted to stand up and look like we were an employer of choice.”

The Co-op scheme is 96% funded and I think helps proves the lie that there is no future for DB schemes.

The retail sector seems to be taking a lead in providing decent pensions for its staff. I posted on Morrison’s "bucking the trend" on DB last week. While recently I went to a pension meeting and met a trustee from the John Lewis (Waitrose) DB scheme which is not only still open but also still non contributory to employees!

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