Qualified advisers answering your
Financial Questions
call 0800 092 1245

Sainsbury In Talks To Sell Final Salary Pension Scheme

In line with many other companies with final salary schemes it has been reported that Sainsbury has requested a number of quotes from pension fund specialists looking to acquire the company’s final salary scheme. While no figures have been mentioned the fund itself is fairly large at £2 billion, but proving to be something of a drag on Sainsbury finances.

The ongoing confusion as to the level of funding required to fully fund the scheme has seen the group look to jettison the scheme to a third party and relieve the group of all future liabilities. The pension fund was seen as a major stumbling block in the recent £10 billion QIA takeover offer which eventually floundered. Whether this proposed change in the company’s pension fund arrangements will bring the QIA back to the table remains to be seen.

Slowly the UK final salary pension fund sector is becoming dominated by small group of professional pension administration companies. They are able to cut costs to the bone and give the scheme the best chance of approaching a fully funded situation as soon as possible. However, in line with pension law, Sainsbury will not be able to sell the fund without the agreement of the pension fund trustees who are there to protect the benefits of the scheme members.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details