Pension rights that are not related to old age, invalidity or survivors’ benefits will transfer to the new employer under TUPE. These are called “Beckmann rights”, after the European Court of Justice case that decided they were not covered by the general exclusion under TUPE. It is important for the transferee to assess whether or not transferring employees might have these rights because they can give rise to substantial costs and liabilities. 4. Identify whether or not there is a duty to provide a minimum level of pension provision after the TUPE transfer Where transferring employees are members of an occupational pension scheme (or are entitled to join one immediately prior to the transfer), the new employer is obliged to put in place a minimum level of pension provision, as set out in the Transfer of Employment (Pension Protection) Regulations 2005. This could include a defined-contribution occupational pension scheme in which the employer matches employee contributions up to a set level. 5. Be aware of special pension rules that apply to public-sector transfers In outsourcing scenarios involving the public sector, specific government guidance and other rules may apply. For example, a private-sector contractor may be required to participate in the public-sector pension scheme that applied to the employees prior to the transfer.
DWP consults on draft laws to remove restrictions on NEST
10 October 2014
The Department for Work and Pensions (DWP) have opened a consultation on their plan to remove the annual contribution limit and transfer restrictions on pension schemes held with the National Employment Savings Trust (NEST). The consultation runs until 29 October 2014, with DWP inviting views from legal advisers, pensions industry professionals, trustees and scheme managers on the draft Statutory Instruments that will remove the restrictions.
The Government say that they have secured the support of the European Commission for the changes, and intend to lay legislation before Parliament in the new year.
National Association of Pension Funds (NAPF) and The Pensions Management Institute (PMI) discuss merger
14 October 2014
The National Association of Pension Funds (NAPF) and The Pensions Management Institute (PMI) have announced their formal intention to discuss the possibility of merging the two organisations.
Thanks to Employee Benefits for this report:
The possibility of a merger will be discussed over the next six to nine months, after which both organisations will update their members and the pensions sector. In the meantime, both the NAPF and PMI will continue to represent their members and pursue their individual strategies. A new combined organisation would be aimed at creating a stronger voice for pensions and retirement benefits in the workplace, drawing on the NAPF’s ability to influence and engage with government and the PMI’s qualifications network. Ruston Smith, chairman of the NAPF, said: “In such a fundamentally dynamic environment, it’s important to consider strategic options that further strengthen our association and enable us to meet the needs of members both today and tomorrow. The complementary services,
CIPP Policy News Journal
08/04/2015, Page 395 of 521
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