TUI unveils pensions shake-up

In a unique deal aimed at reducing its pension costs, holiday firm TUI Travel yesterday revealed a plan to overhaul its pensions structure, saving the firm £38m a year and limiting growth in its defined benefit schemes to 2.5 per cent a year. TUI has also pledged to hold up value in its Thompson and First Choice brands as collateral for the pension schemes if the company goes bankrupt. The shake-up reduces TUI’s pension deficit by £63m, and the firm has committed to paying in up to £275m more to help plug the hole.