[guide.chat] news tesco pensions go to 67 years
- From: vanessa <qwerty1234567a@xxxxxxxxx>
- To: "GUIDE CHAT" <guide.chat@xxxxxxxxxxxxx>
- Date: Wed, 14 Mar 2012 12:27:11 -0000
Tesco First To Raise Retirement Age To 67
Tesco is the biggest retailer in Britain and one of the nation's biggest
employers
11:17am UK, Wednesday March 14, 2012
Tesco has become the first British company to announce it will raise the
retirement age for its staff to 67, paving the way for others across the
country.
More than 170,000 employees face working an extra two years in order to qualify
for the maximum entitlement on their pensions, as Britain's biggest supermarket
considers raising its retirement age from 65 to 67.
The company has launched a consultation with employees on the subject, but
unlike most other FTSE 100 firms will continue to allow new members to join its
pension scheme.
Tesco Pension Plan Changes: The Numbers
:: 293,676 employees in the UK
:: 172,000 active workers
:: Retirement age moves to 67 from 65
:: Contribution rises by CPI not RPI
The scheme already has more than 293,000 members including 172,000 active
workers, and the company plans to create 20,000 more customer service jobs in
the UK over the next two years in customer service as it refreshes existing
stores and opens new ones.
Under the new plans, Tesco will also use the lower inflation measure - consumer
prices index (CPI) - to calculate the annual increases in its contributions to
employee pensions.
It currently uses the retail prices index (RPI) which was 3.9% in January
compared to a CPI figure of 3.6%.
However, it has kept the maximum rise in any year at 5%, twice the level set by
the Government.
Although the change in retirement age will not force workers to remain in
employment until they are 67, deciding to stop working earlier would hit
pension savings.
The supermarket hopes to introduce the changes from June 1, adding they were
necessary to limit risks such as unexpected rises in life expectancy.
A Tesco spokesman said: "Because people are living much longer pensions cost
much more to provide. These changes make our defined benefit scheme
sustainable."
When Tesco launched its first pension scheme in 1973, it expected retirees to
live to 77, but now the firm expects average 40-year-old employees to live into
their nineties.
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