What happens to my pension rights in the event of my employment being transferred to a new owner?

If you are a member of an occupational pension scheme with your original employer, and you are transfered to a new employer under TUPE regulations, the new employer has an obligation to give you at least some degree of pension provision, as long as you are willing to contribute to it yourself.

This does not mean they have to continue a scheme with the same conditions as your old one, and they will be able to offer you a different scheme, potentially with reduced benefits. They are able to choose whether the new scheme is a defined benefit (DB), defined contribution (DC), or stakeholder scheme.

Employers have an obligation to pay contributions into a new scheme, matching your employee contribution, up to a maximum of 6% of earnings.

This right also applies to you if you were eligible to join the pension scheme under your original employer but did not choose to do so, or if you were due to become eligible to join at the end of a waiting period.

Employees transferred into or out of the public sector should also have pensions protection under a Cabinet directive issued in February 2000.