Date: 29 July 2010
March UK, have announced they propose to close the Littlewoods Pension Scheme to future benefit accrual on 31 December 2010.
March UK, the holding company of home shopping
giant Shop Direct Group, logistics company Yodel (formerly HDNL)
and direct marketing company Transactis, have announced they
propose to close the Littlewoods Pension Scheme to future benefit
accrual on 31 December 2010.
The scheme, which was closed to new entrants
in 2001, has a large deficit and March UK maintain their three
subsidiary companies are no longer in a position to both address
the deficit and support further accrual to the scheme.
At the moment, 777 employees of Shop Direct
Group, 419 employees of Yodel and 154 employees of Transactis still
contribute to the Littlewoods final salary pension scheme.
Under March UK’s proposal, pensionable service
for these 1,310 employees will come to an end on 31 December 2010,
but a link with their final salary will remain – meaning employees
pensions will be calculated based on service up to 31 December 2010
and their salary at the date they retire.
March UK also propose that from 1 January
2011, affected employees of all three companies will be given the
opportunity to join a stakeholder plan with Standard Life,
receiving a pension contribution from their employer which will
match their own up to a maximum of 5% of salary.
David Johnson, Usdaw National
Officer said:
“Usdaw is extremely disappointed by March UK’s
proposal. While we recognise that even many profitable companies
have closed their final salary pension schemes, we are very
concerned about the impact this could have on our members and their
plans for retirement.
Consultation on the proposals has started and
further talks with the company are currently being arranged.”
Irene Radigan, Usdaw National
Officer said:
“Following this regretful announcement, Usdaw
will be working hard throughout the consultation period to ensure
our members’ interests are protected.
We will also update members on all
developments throughout the consultation process.”
Usdaw members who have questions about March
UK’s proposals or just about pensions in general can call the
Union’s pensions team on 0161 249 2440 or email pensions@usdaw.org.uk.