Tesco staff pensions face uncertain future

Tesco has started efforts to plug an estimated £5billion gap in its pension scheme by commencing consultation with its 300,000 strong staff about the future of their company pensions.

The news arrives a day after Tesco’s corporate broker, JP Morgan Cazenove, claimed the retailer needed to raise cash to plug the black hole in its pension fund.

The supermarket's pension’s director, Ruston Smith, has sent a letter to staff saying “In January we announced our plans to consult on closing our existing pension scheme and replacing it with a new scheme.”