UK retailer Tesco's plan to pay £270 million a year into its pension fund, to correct a deficit gauged at £2.8 billion last month, is likely to be the harbinger for the last remaining private sector companies to withdraw expensive defined benefit pensions from their staff.

Tesco unveiled its pension deficit recovery plan this morning, amid a tough set of results for the retailer. The company reported a £6.4 billion pre-tax loss for the 12 months to February 28, with chief executive Dave Lewis describing it as "a very difficult year for Tesco".