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ARTICLE · 08 MAY 2014

TUPE: Options For Minimum Pension Arrangements Extended

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Between April 2005 and April 2014, where employees transferred to a new employer, the new employer was required to provide certain minimum pension benefits.

United KingdomEmployment and HR
Justin McGilloway
Justin McGilloway

Background

Between April 2005 and April 2014, where employees transferred to a new employer (the "Transferor Employer") under TUPE1 and they were entitled to occupational pension scheme benefits, the new employer (the "Transferee Employer") was required to provide certain minimum pension benefits going forward.

Broadly, the Transferee Employer was required to provide one of the following pension arrangements, for the transferring employees: 

  • a defined benefit scheme which meets certain prescribed requirements; 
  • a defined contribution occupational scheme or a stakeholder scheme to which the Transferee Employer must match the employee's contributions up to 6% of basic pay.

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