House of Fraser has closed its final salary pension scheme to future accrual.
The retailer made the move after its pension scheme deficit nearly trebled, from £31.7 million at the end of January 2011 to £85 million at the end of January 2012.
The scheme was closed to new members in 2002, so 350 of House of Fraser’s 7,000 employees will be affected by the latest closure.
Employees will retain the accruals earned to date under the defined benefit (DB) pension scheme and will be given the option to join the organisation’s stakeholder scheme.
A spokesperson from House of Fraser said: “These actions bring us in line with most other retailers in time for the government’s impending auto-enrolment requirements.”
Read more about defined benefit (DB) pension schemes