UK supermarket retailer Tesco has had to increase the amount the company pays into its final salary pension scheme to make up a deficit of £159m (US$254m).

While the 40,000 members of the scheme will also have to increase their contribution by 0.75% of their salary, Tesco said it will pay more than two thirds of the extra cost required, more than double the employee contribution.

Under current regulations, an employer is duty bound to pay in extra funds if a final salary scheme suffers a shortfall, reported BBC Online.