Q&As

Where an employee is transferring from one employer to another by virtue of TUPE, where the transferor is the parent company and the transferee is the subsidiary what are the options for the group companies in respect of the transferring employee's occupational pension? Would the answer change where the transferor has a smaller shareholding?

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Published on LexisPSL on 17/06/2021

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • Where an employee is transferring from one employer to another by virtue of TUPE, where the transferor is the parent company and the transferee is the subsidiary what are the options for the group companies in respect of the transferring employee's occupational pension? Would the answer change where the transferor has a smaller shareholding?

Where an employee is transferring from one employer to another by virtue of TUPE, where the transferor is the parent company and the transferee is the subsidiary what are the options for the group companies in respect of the transferring employee's occupational pension? Would the answer change where the transferor has a smaller shareholding?

We have assumed that the transferor's scheme is an occupational pension scheme—the answer would be different if the transferor had a contractual obligation to contribute to a transferring employee's personal pension scheme.

The answer will depend on the circumstances.

Where the transferor employer and the transferee are in the same group of companies, it is possible they both participate in the same occupational pension scheme. In that case, the employees may be able to continue their membership of the scheme on the same terms and the transfer will have little impact.

It may be less likely that a joint venture

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