Tesco has just posted the worst results in history with a loss of £6.4bn for the year to the end of February.
It is the biggest loss suffered by a UK retailer and one of the largest in the country’s corporate history.
This result has a big impact on the company for both the bosses and staffs.
Tesco’s chief executive Dave Lewis admitted it had been “a very difficult year for Tesco” adding that the staffs at Tesco are currently being sent details of a plan to replace its generous pension scheme.
Tesco consulted with its staff about their decision of replacing benefit pension scheme, they want to close the benefit pension scheme which guarantees a pension based on earnings and length of service, if that happens staff will have to move to a defined contribution scheme which are less generous and the size of the pension pot depends on the success of the investments the money is put into.
Malcolm Mclean of pension consultants at Barnett Waddingham said that the current scheme of Tesco is one of the best on the market offering Tesco employees a guaranteed risk free way of accumulating valuable pension provision for their future 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 cost on a number of fronts”, Malcolm Mclean said. Tesco has come up with a plan to pay £270 a year to try reduce UK deficit and to meet the expenses of the scheme. They are confident their plan will work and that they will be back on their feet with no time.