Sainsbury pension fund to increase equity holding - papers 18th Oct

Instead of holding 100% of its assets - backing pensions already being paid to former employees in low-risk bonds - an increasing portion of "pensions in payment" will be backed by equities. The riskier 60/40 equities and bonds split is being suggested at the same time as the supermarket chain is cutting around 700 jobs from its head office to help pay for 3,000 extra in-store staff. EVEN AFTER the changes have been made, the Sainsbury closed final salary pension scheme still faces a £360m shortfall, according to the Times. John Ralfe - independent pensions consultant and the man r...