Pension gap after takeover

cyclonebri1

The company that wifey works for has been bought out and the existing pension scheme closed from thye end of the year. Although no details are available yet it is understood that they will provide a new scheme as from 1st April.

Now from help on here I understand that under TUPE regs, they have to do this, but is the 3 month gap with no option to fund or contribute during this time allowable?

Thanks

cyclonebri1

" boing", I think is the word?

I ask this again as we have now been invited to attend a presentation by the new pension providers next week.

Of course I understand that the lack of response may be down to the fac that nobody knows?

Debt_Free_Chick

When was the company bought out? On what date did your wife's employment transfer to the new employer?

cyclonebri1

Company officially changed hands from the 31st Dec 08, after it was anounced in early Dec, all pension options were suspended from that date.

Subsiduary of RAC/Norwich Union/Aviva but now German owned

Debt_Free_Chick

In which case, I believe the new company is on dodgy grounds - yes, they should have provided a comparable pension scheme from 1 Jan.

However, perhaps they're intending to "bridge the gap" by making up the three month gap in the new scheme?

worth asking - post back if the answer is not favourable.

cyclonebri1

That's what I thought, I can't see any allowance for a "holiday" as such. I intend to ask for the opportunity to make payments on both sides to fill the gap. I'll know more when the presentationa are carried out;)

cyclonebri1

Well To answer my own query, when a company is taken over under TUPE conditions it is not permissible for there to be a gap in the funding. (been to the presentation today).

The guy from Willis who are managing the scheme said the 1st thing they asked when approached to oversee the transfer was "was it done under TUPE" ?

Unfortunately it wasn't, it was a complete buy out rather than a takeover? my understanding runs out there!

He did say as a concession that it was not unknown for the new employer to accept voluntary make up with comp contributions as an internal measure;)

Debt_Free_Chick

cyclonebri1 wrote: »

Well To answer my own query, when a company is taken over under TUPE conditions it is not permissible for there to be a gap in the funding. (been to the presentation today).

The guy from Willis who are managing the scheme said the 1st thing they asked when approached to oversee the transfer was "was it done under TUPE" ?

Unfortunately it wasn't, it was a complete buy out rather than a takeover? my understanding runs out there!

He did say as a concession that it was not unknown for the new employer to accept voluntary make up with comp contributions as an internal measure;)

I kind of understand - it rather depends on the nature of the transaction, by which the business/employment transferred.

It would be helpful to know if the new company bought the share capital of the old company; or just the assets.