DWP says acquiring firms must pay contributions

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Employees working for firms subject a takeover will be entitled to pension contributions after the deal is completed, under new regulations within the Pensions Act.

New regulations announced yesterday by Pensions Minister Malcolm Wicks, and which comes into practice on 6th April, require new employers to provide transferred employees with a ‘substantial pension contribution’ where the Transfer of Undertakings (Protection of Employment) regulations apply. Wicks says: “Employees with access to occupational pension provision prior to a TUPE transfer will now have the right to a prescribed level of employer pension provision after the transfer.” New regulation acts on responses to a consultation document published in December last year, where majority...

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