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Are pensions covered under TUPE?

Are pensions covered under TUPE?

The general principle under TUPE is that employees will have the same rights with the new employer. This is not pensions law, it is employment law.

What is TUPE pension?

TUPE: Transferring occupational pensions and personal pensions. These type of pensions could be defined benefits, where employers pay you a set income according to your years of service and salary. They could also be defined contributions, where both you and your employer contribute to your account.

What happens to my pension when company is sold?

When a company establishes a pension plan, the plan itself is a legal entity. When one company acquires another, the plan’s obligation to pay you the full amount of your vested benefits remains the same, whether the plan stays as part of the old company or becomes part of the new company.

What benefits transfer under TUPE?

Regulation 4 of TUPE operates to transfer all rights, powers, duties and liabilities under or in connection with a contract of employment to a transferee employer.

What is the difference between personal and occupational pension?

Occupational pensions are set up by employers to provide retirement income for their workers, while a group personal pension (or stakeholder pension) is a scheme chosen by the employer with an individual contract in place between the pension provider and the member of staff.

Can a company stop paying your pension?

Employers can end a pension plan through a process called “plan termination.” There are two ways an employer can terminate its pension plan. To do so, however, the employer must prove to a bankruptcy court or to PBGC that the employer cannot remain in business unless the plan is terminated.

Do you get a new contract when you TUPE?

Under TUPE, any attempt to change your contract terms will be void if the only reason or main reason for the change in contract terms is the TUPE transfer. This means it would be unlawful for your new employer to reduce your pay, or make any of your existing contract terms less favourable.

Who is entitled to TUPE?

Only employees on permanent or fixed term contracts are liable for TUPE transfer. Agency workers are not. If you happen to have employees who are temporarily assigned to work in a different office or department within the business or for another organisation, this can complicate the situation.