The DWP has started a consultation on changing the Transfer of Employment (Pension Protection) Regulations 2005, in relation to pension protection arrangements following a TUPE transfer. The consultation closes on 5 April 2013. The Regulations require the transferee to make sure that the employee is, or is eligible to become, an active member of an occupational pension scheme which meets prescribed standards, with one of the specifications being that that the new employer contributions to the scheme should match those of the employee up to 6% of basic pay. But the Government is of the view that the Regulations in their current form do not clearly set out the original policy intention to give the transferred member the right to choose their rate of contribution to the scheme. It is therefore proposed that that the Regulations be amended to confirm an employee's right to choose the level of his or her own contributions (subject to any minima in the scheme rules) which must be matched by the employer up to a maximum of 6%. In addition, proposed changes will allow transferees to meet the prescribed standard by matching the contributions paid by the transferor immediately prior to the transfer as an alternative to matching the level of contributions chosen by the employee.
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