TUPE and pension

Transfer of Undertakings (Protection of Employment) Regulations – How Does it Affect the Pension?

If you are an employee and you have a feeling that the current changes by the employer can cause negative effects on your pension, you are on the right page. We will discuss how your employment rights can be saved. The conditions of your pension will be protected but you have to be knowledgeable enough to know your TUPE and pension well.

We have got you covered here as you will get to know everything you need to gather information to handle the changes that can affect your pension. However, being knowledgeable is an easy way to understand things first and then apply your knowledge to avoid any damage. This is important to know that your employment rights, as well as your pension conditions, can be under the protection of TUPE when you realise any changes can disturb them.

Further in this article, we will help you to understand the basics of what is Transfer of undertakings (protection of employment) regulations (TUPE), its rules and regulations, and what is the possibility of TUPE affecting your pension.


Transfer of Undertakings (Protection of Employment) Regulations (TUPE)

Transfer of Undertakings (Protection of Employment) Regulations is also known as TUPE. The main purpose of the establishment of the rules of TUPE is to provide protection for employment rights. As several situations cause damage to the rights of employees when there is a change made by the employer in business or its rules and regulations. The merging of companies is one such example.

The general focus of TUPE is to ensure that the employees get the rights of employment even when the employer change or any other change occurs in the company. This also comes under the employment law, however, to the tension law.

Let’s take the example where your company is merged with another business, some other employer has taken over the position, or you are now outsourcing to another employer but remain in the same employment, TUPE makes sure that your built-up pension benefits are under protection under the same workplace pension scheme.

The rules may vary in the case of the private sector than in the public sector. If you are transferred from one sector to another, even then the rules are different about what your new employer will offer you in the new circumstances.


If you are looking for a professional who can guide you on how to avoid getting your pension affected, get in touch with one of our experts at Accotax. We are available from 9:00 am – 05:30 pm Monday to Friday.


The Rules of Transfer of Undertakings (Protection of Employment)

The essential elements to consider when the business is being transferred from one sector to another are listed below for you:

  • When a business is transferred to another sector, this means the business is the same but the hands to handle the whole business or a part of it have been changed. This shifts the power and rights of the old employer to the new one immediately.
  • The employees are bound to work as per the requirements of the new employer and forget about the old employer.
  • The employee who was eligible for the pension scheme just before the transfer of the old employer will remain eligible to get the same benefits or the ability to join the scheme.

Moreover, in the case of service provision change, TUPE has the ability to apply its rules. Let’s take an example where the employer is outsourcing a contractor, but then a new contractor comes in and takes over the activities. This applies even when the employer takes back the charge of activities from the contractors.


How Does TUPE Affect Pension In Different Sectors?

In the case of the private sector when a new employer has employed you do not have to offer the new pension scheme rules and regulations. It depends on the old employer’s pension scheme that will explain what they can offer you. Moreover what your employer must offer is explained below:

  • If the old employer was giving you an automatic enrollment scheme then the new employer must offer a defined contribution scene. Where it should be ensured that the employer’s contribution matches up to the employee’s contribution.
  • In case the old employer was offering contractual entitlement to employer contributions, the new employer must offer in such a way that his contributions are at the level of the old employer’s contributions.
  • If a defined benefits scheme is offered by the old employer, the new employer should also contribute in a way that matches up to the contributions of the employee.

Now let’s consider the case of the public sector where employers’ offers will depend on whether you are associated with the local public services or the government departments. The employer should offer the following in both cases:

  • If you are associated with the government department and the old employer offered fair deal terms then the new employer has to offer the public sector scheme.
  • In case you are associated with the local bodies, the new employer will offer either the public sector scheme or a broadly comparable occupational scheme that is at the level of the public sector.


Get your queries together and get in touch with one of our professionals at Accotax. We will love to know your requirement and provide the best possible solutions. Give us a call on 02034411258 or request a callback


The Bottom Line

Finally, we can sum up the discussion of TUPE  and pensions. As you have gathered basic information about how TUPE terms and conditions work for you to protect your pension in case your employer has made certain changes in the business. Regardless of being part of the private sector or the public sector as an employee you can count on TUPE to seek protection for your pension benefits.

We hope you will be advantageous to apply this knowledge in practice and will protect yourself from being in an unfavourable situation at work.


Disclaimer: The information about  TUPE  and pensions provided in this article is general. It does not intend to disregard any of the professional advice.

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