Pension protection added to TUPE transfers

Workers whose companies have been taken over will have a right to employer pension contributions thanks to new regulations that will come into force next month.

The Pensions Act 2004 sets out the detail for pension provision and requires new employers to provide transferred employees with a substantial pension contribution in a business transfer where TUPE Regulations apply.

Pensions minister Malcolm Wicks said: ÒEmployees 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.

ÒWe 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.Ó

The provision in the Pensions Act 2004 for pension protection requires new employers to provide transferred employees with a pension scheme which meets certain requirements.

The Transfer of Employment (Pension Protection) Regulations provide the detail of the contribution requirements to a defined contribution or stakeholder pension scheme and set out alternative options for a defined benefit occupational pension scheme.

The changes will come into force on 6 April.


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