J Sainsbury injects millions into pension scheme

J Sainsbury has reached a revised funding agreement with its pensions trustees to increase its annual payments from £38m to £49m for the next ten years.

The supermarket chain will establish a new property partnership with the pension scheme, which will address £600m of the organisation’s £1,227m deficit.

Properties to a value of £750m will be transferred to the partnership, which will provide the pension scheme with an annual income of £35m for 20 years.

The agreement covers the J Sainsbury pensions and death benefit scheme and the J Sainsbury executive pension scheme. As part of the agreement these schemes will be merged into a single scheme.

Last week, the Marks and Spencer Group also reached a similar agreement with its pension fund trustees, granting the pension scheme a further interest in its property-backed partnership and injecting £800m into its defined benefit (DB) scheme.

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