Asda to close pension plan for managers

Supermarket giant Asda is closing its final salary pension after its deficit nearly doubled in the past nine months.

It took the decision to close the scheme to existing members after the funding shortfall soared to 400 million from 210m at the start of the year.

The move will affect about 3,800 Asda staff, all of them managers, who will be transferred into the group's defined contribution scheme.

Asda is attempting to soften the blow by offering those affected a one-off payment of 25 per cent of annual salary.

An Asda spokesman said: "We need to address the deficit. It has grown significantly and it is important that we protect the business in the future.

"The deficit has almost doubled to 400m in just nine months."

The news comes the day after former Labour Cabinet minister Lord Hutton called for an end to final salary pension schemes for public-sector workers.