Is pension covered under TUPE?

Entitlement to pension benefits under occupational pension schemes do not, as a general rule, transfer under TUPE. This is also known as the ‘pensions exemption’.

What type of pension is LGPS?

defined benefit occupational pension scheme
What kind of scheme is it? The LGPS is a tax approved, defined benefit occupational pension scheme set up under the Public Services Pensions Act 2013. The benefits under the scheme are based on your Career Average Re-Valued Earnings (CARE) from 1 April 2014. It is very secure because the benefits are set out in law.

Does TUPE apply to public sector?

TUPE applies to public sector transfers if the transfer is from the public sector into the private sector or from one public authority to another. For example, from the NHS to a local authority. TUPE does not apply to transfers within the public sector where the employer does not change.

What benefits are protected under TUPE?

TUPE simply preserves any existing contractual benefits; it does not improve them for the employees. Alternatively, employees may have a contractual entitlement to participate in a particular benefit, but the employer may reserve discretion as to the scope or terms of the benefits.

Can a TUPE be part of an occupational pension scheme?

If the transferring employees are members of an occupational pension scheme, the position is slightly more complicated. The pensions exemption in Regulation 10 of TUPE means that most rights under an occupational pension scheme are “carved out” from the normal operation of TUPE.

Are there exceptions to general pension carve out under TUPE?

Certain rights under occupational pension schemes do transfer under TUPE The two key European Court of Justice (ECJ) cases of Beckmann and Martin established the principle that there are exceptions to the general pensions carve out, which applies to old age, invalidity and survivors’ benefits.

Is the local government pension scheme a competitive advantage?

As the doors close forever on many defined-benefit pension schemes, the Local Government Pension Scheme (LGPS) is a significant competitive advantage for local government employers in attracting and retaining staff. However, there are traps for the unwary that need to be watched.

Are there any changes to public service pension schemes?

The proposed changes to public service pension schemes will impact different transfer cases in different ways. For some transfer cases it may become necessary for GAD to pause work whilst the implications of the judgment are considered.