UK newsagent chain TM Retail will use stakeholder pensions to replace its two defined benefit schemes, which have been closed to new members.

In recent years many companies have closed their defined benefit schemes to new members and opened defined contribution schemes where responsibility for investment choice is placed on the individual member rather than the company. However, TM Retail, which employs 16,000 people, is thought to be the first company to announce that its defined benefit schemes will be replaced by a government-styled stakeholder pension scheme.