Next freezes future accrual in DB scheme
13 September 2012 (PLANSPONSOREurope.com) Next expects to freeze future accrual of benefits for members of its final salary scheme from November, following a consultation.
The High Street clothing giant announced the move in its half-year results today (13 September 2012).
Its report states: “The defined benefit section was closed to new members in October 2000 and the Group has recently reviewed the operation of this section for its remaining employee members.
“Following a consultation process with those employees it is expected that, from 31st October 2012, the future accrual of their pension benefits will be based on pensionable salary frozen at that date.”
The move follows a series of derisking afforts from Next, including a £24m pensioner buy-in earlier this year following a £124m on in 2010.
The results also showed the Next Group Pension Plan is in £40m surplus, up from £35m in January.