At present, people working for companies that offer them an occupational pension scheme have sometimes found that following a takeover their new employer does not continue with the pension contributions offered by their previous employer. But as from 6th April, employers will be obliged to offer transferred employees with a pension scheme that meets certain requirements, detailed in the new Transfer of Employment (Pension Protection) Regulations. The Regulations form part of the Pensions Act, and set out the contribution requirements for a defined contribution or stakeholder pension scheme and the alternative options for a defined benefit occupational pension scheme. Only business transfers covered by the Transfer of Undertakings (Protection of Employment) Regulations – better known as the TUPE Regulations – are relevant. "Employees 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," said the Pensions Minister. "We 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." The Government is currently consulting on changes to the TUPE Regulations.
