Up until now, people working for companies that are bought out
have sometimes found their new employer scraps their pension
contributions. New regulations will change this, according to an
announcement by Pensions Minister Malcolm Wicks.
Mr Wicks today announced the publication of a consultation
document on the requirements for pension provision where there has
been a business transfer to which the Transfer of Undertakings
(Protection of Employment) Regulations apply – better known as the
TUPE Regulations.
Announcing the requirements, Mr Wicks said:
"These regulations provide the final detail
of the requirements for employer pension provision which we set out
in the Pensions Act 2004. Our proposals, which have been widely
welcomed, will ensure that for the first time employees with access
to occupational pension provision prior to a business transfer will
have a prescribed level of employer pension provision afterwards
too."
The consultation period will run until 21st January 2005.
Depending on the response to the consultation, the Government will
be seeking to lay the Regulations for implementation on 6th April
2005.
