TUPE rules on payment into pensions

amcluesent

I and a number of colleagues are being transferred to a new organisation under the TUPE rules.

We have been told the grade bands we are being given in the new organisation, and the maximum pay for each band in organisation. For a number of us, our current salary exceeds the grade maximum.

We've been informed any salary increased we now get will not be consolidated into pensionable pay (for a final salary scheme), but will be treated as a 'bonus'. Effectively our pensions contributions will be frozen at their current level.

Is this allowable under TUPE?

RibenaBerry_2

I'm afraid that that's a really complicated question. I would recommend that you seek specialised advice from a lawyer with all the documents. Alternatively, your TUPE representatives could ask the company whether they'd be willing for them to take legal advice on that point at the company's cost - might be worth it to them to resolve the point.

As a very general rule, if you are currently in a final salary scheme, those don't generally transfer under TUPE, so you don't have the right to have your position preserved. However, there are additional add on rules and carve outs, and personal pensions and occuptional pensions also have different rules depending on the scheme and what is set out in your employment contract.

Sorry to be vague!