At present, people working for companies that offer them an
occupational pension scheme have sometimes found that following a
takeover their new employer does not continue with the pension
contributions offered by their previous employer.
But as from 6th April, employers will be obliged to offer
transferred employees with a pension scheme that meets certain
requirements, detailed in the new Transfer of Employment (Pension
Protection) Regulations.
The Regulations form part of the Pensions Act, and set out the
contribution requirements for a defined contribution or stakeholder
pension scheme and the alternative options for a defined benefit
occupational pension scheme.
Only business transfers covered by the Transfer of
Undertakings (Protection of Employment) Regulations – better known
as the TUPE Regulations – are relevant.
"Employees with access to occupational pension provision prior
to a TUPE transfer will now have the right to a prescribed level of
employer pension provision after the transfer," said the Pensions
Minister. "We are determined to ensure that employees have the
protection they deserve when it comes to their pension provision
and the requirements in the Pensions Act and the supporting
Regulations provide that additional security."
The Government is currently consulting on changes to the TUPE
Regulations.
