DSGi proposes closure of defined-benefit pension scheme due to rising costs and risks
David Woods, January 15, 2010
DSG International (DSGi) is to close its defined-benefit scheme to future accrual.
The company, which owns brands such as Currys, PC World and Dixons, announced in its Christmas Trading Update released yesterday that it would be consulting staff on the changes to the scheme.
A spokesman from the firm told HR magazine: "In terms of why, essentially it's because of the increasing costs and risks of providing a defined-benefit pension scheme. For us it's also another important step in our efforts to continue to transform DSGi."
The changes are due to take place on 30 April 2010 following the closure of the scheme to new entrants in 2002.
The closure of the scheme will impact 2,400 employees out of a UK workforce of 23,000. A further 17,000 European staff will be unaffected by the announcement.
If the proposal goes ahead, the staff affected will move to the existing defined- contribution scheme, under which they will contribute either 3%, 4%, or 5% of salary and the company will double the contribution.