Labour Research (June 2004)

Law Matters

TUPE rights

The Pensions Bill, currently being debated in the House of Commons, will give workers some protection against loss of pension rights if transferred to a new employer under the transfer (TUPE) regulations.

If workers had an occupational pension scheme with their old employer or a money-purchase scheme which their employer paid into, they will have the right to be a member of any occupational or money purchase scheme run by the new employer, who must make contributions into it.

The Bill does not go so far as to require that the new employer makes the same contributions into the scheme, or that the benefits are the same. So long as the employer contributes at least 6% of the employee's salary this will meet the requirements of the new legislation.


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