TUPE And Pension Rights - Some Changes

TUPE transfers give rise to very complex pension issues, as illustrated in the case of Proctor & Gamble Company v Svenska Cellulosa Aktiebolaget SCA & Other [2012] EWHC 1257 (Ch), which we reported on in August. The response to the BIS Call for Evidence: Effectiveness of Transfer of Undertakings (Protection of Employment) Regulations 2006 was published on 14 September. The consultation raised various questions about how TUPE applies to pension rights and, unsurprisingly, not all of the questions were answered. Of particular relevance to the wider pensions industry are the uncertainties over how TUPE interacts with auto-enrolment.

Whilst the Pensions Regulator did issue guidance notes on how employers should deal with autoenrolment on TUPE transfers, unresolved questions remain over employer contributions and employee opt-outs. Concerns have also been raised in relation...