The company is considering whether to dilute pay-outs for its 5,000 staff in a bid to fill a £19 million deficit in its pension plan, the newspaper reports.
The firm allows its employees to join a defined-benefit retirement scheme, meaning the payments they receive when retired are linked to their average earnings at Saga.
Under the potential changes, Saga could put a ceiling on benefits, or get workers to make cash contributions to retain their current benefits, the Sunday Times reports.
The deficit in the pension plan narrowed from £40.4 million to £18.8 million last year and disclosures in the annual report suggest a half a percentage point rise in long-term government bond yields would push the scheme into surplus.
The cost of operating schemes like Saga’s has risen over the past decade due to record low interest rates and a rise in life expectancy.
The Sunday Times reports that Saga declined to comment while the “consultation process with its employees is ongoing”.
