The following Employment Q&A provides comprehensive and up to date legal information covering:
In a TUPE transfer, regulation 10 of the TUPE Regulations prevents contractual rights relating to old age, invalidity or survivors' benefits under occupational pension schemes from transferring across to the new employer (the transferee). This is known as TUPE's pension exception.
The application of regulation 10 is determined not by the nature of the particular TUPE transfer concerned but instead by the nature of the pension scheme concerned. Regulation 10 specifically applies only to occupational pension schemes. As a result, the exception does not apply to personal pension schemes or group personal pension schemes (since they are not occupational pension schemes). Thus, where the transferor's pension scheme is a personal or group personal pension scheme, contractual rights relating to such a scheme (including any contractual rights relating to employer contributions) will not be covered by the pension exception and will transfer under TUPE, including where the transferor and transferee are associated companies.
Conversely, where the transferor's
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