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Leaving your pension scheme

TUPE

The Transfer of Undertakings (Protection of Employment) regulations, or TUPE, may protect the pension benefits that you have built up if you are affected by a business transfer or outsourcing.

If your employer is taken over or merges with another company or your role is outsourced to another employer, and you remain in employment, the pension benefits you've already built up in a workplace pension scheme are protected. Different rules apply to private and public sector transfers as to what your new employer must provide in the future.

How are pension rights affected in the private sector?

The new company employing you doesn't have to offer the same terms and conditions for their new pension scheme. What they must offer depends on your old employer’s pension arrangements:

Old employer New employer must offer
Defined contribution workplace scheme (includes Master Trusts such as NEST, People’s Pension and NOW pensions)

 

Defined benefit scheme which provides specified level of pension, or Defined contribution scheme which matches employee contributions up to 6% of basic pay, or



Defined contribution scheme (either workplace or personal/ stakeholder pension) which matches level of contributions the old employer had to pay (up to 6% of basic pay)

 

Personal or stakeholder pension

 

Defined contribution scheme which matches level of contributions the old employer had to pay (up to 6% of basic pay)

 

Defined benefit scheme

 

Defined benefit scheme which provides specified level of pension, or



Defined contribution scheme which matches employee contributions up to 6% of basic pay, or



Defined contribution scheme (either workplace or personal/ stakeholder pension) which matches level of contributions the old employer had to pay (up to 6% of basic pay)

 

 

How are pension rights affected in the public sector?

What your new employer must offer depends on whether you work for central government departments/ under the control of government ministers or you work for a local authority or some other localised public service.

Old employer New employer must offer
Central government, NHS or other agency subject to ‘Fair Deal’ terms Usually continued membership of public sector scheme
Local authority and some other localised bodies Continued membership of public sector scheme, or

Occupational scheme which is broadly comparable to the public sector scheme

 

What if I am already receiving my pension?

If you’re already receiving a pension from your scheme, these should not be affected by a take-over, merger or outsourcing. You can find out more about TUPE on the Government’s website

 

Frequently asked...

Where can I find out more?

If you need more information, please contact us. A pension specialist from our team will be happy to help with whatever pensions-related question you have. Our help is always free.

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