General Insurance Article - BW on Radio 5 comment on possible closure of Tesco DB scheme

 
 "There is no doubt about it ", he said, "that the current scheme is one of the best if not the best on the market offering as it does to Tesco employees a guaranteed risk-free (to them) way of accumulating valuable pension provision for their later lives.
 “Tesco is now clearly going through a difficult patch in terms of its business affairs and is looking to improve its profitability and reduce costs on a number of fronts. Against this background and in the face of rapidly growing funding deficits it is hardly surprising that this very lucrative pension scheme may have to follow the example of many others in the private sector and ultimately close down.
 “Should the scheme closure go ahead, existing entitlements to date will, of course, be preserved and it is hoped that Tesco being the good employer we know them to be will find it possible to provide an alternative scheme (albeit one of a defined contribution nature and less generous than the present one) which will enable their employees to continue making adequate provision for their retirement in years to come"