The John Lewis Partnership is to save tens of millions of pounds by ceasing a series of multimillion-pound injections into its pension scheme after it swung into surplus.
Sky News has learnt that the retail mutual will stop the annual deficit repair contributions following a triennial valuation of one of Britain’s biggest private sector retirement schemes.
Sources said the move could be disclosed when JLP announces its half-year results on Thursday.
The news will be a welcome relief to the owner of John Lewis department stores and Waitrose supermarkets, which has amassed substantial financial losses in recent years.
Under chair Dame Sharon White, JLP has appointed its first chief executive – Nish Kankiwala – who has warned it needs to “act at pace” to transform its performance.
The Partnership’s pension scheme has around 130,000 members.
It is expected to show a surplus of roughly £300m when the valuation as at 31 March 2022 is concluded.
That would compare to the previous triennial valuation, to 31 March 2019, which showed a deficit of approximately £60m.
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One insider said that using the same agreed valuation assumptions, the scheme is also expected to have been in surplus as at 31 March this year.
JLP was among the last companies to have a final salary pension scheme.
In May 2019, its Partnership Council – one of its elected governing bodies – unanimously agreed changes to its pension arrangements, resulting in the closure of the final salary scheme and the introduction of a new defined contribution pension.
A spokeswoman for the partnership declined to comment on Wednesday.
