Department store chain Debenhams is planning to close its £500m final salary (defined benefit) scheme to new members and stop existing members from building further benefits.
The retailer plans to replace its final salary scheme with a stakeholder scheme provided by Prudential, with contributions of up to 5% of annual salary to be matched by the company.
The proposal is now subject to a 60-day consultation period, a company spokesman said.
Debenhams joins a long list of companies that have closed their final salary pension scheme since the start of the year, a trend that is expected to continue over the next three years.
A recent survey of 115 UK employers, by Aon Consulting, revealed that while 27% offered defined benefit pension schemes to new members, this is expected to fall to 18% in 2009.
The majority of pension schemes in the survey (61%) are currently closed to new members, but remain open to accrual for existing members.
One-fifth (20%) of respondents said they were considering closing their schemes altogether in the next 12 months, and four in 10 (40%) in the next three years.
