Pensions
[ch 2: page 27]Employers must not change contractual pension arrangements, including contribution rates, except by agreement — with the union where one is recognised.
Employers with over 50 employees must consult actual and prospective members of the pension scheme at least 60 days in advance of significant changes, for example to contribution levels. The Pensions Regulator can fine employers up to £50,000 for failing to consult and can order backdated payment of unpaid contributions at the higher level.
As well as contractual rights, there are important minimum statutory rights and duties relating pensions auto-enrolment.
Many trade unions have a pensions officer with expertise in the pension arrangements available to their members. There is also information available from the Pensions Advisory Service, which runs a helpline and a website: www.pensionsadvisoryservice.org.uk.
If a private sector employer gets into financial difficulty with a defined benefit pension scheme without enough assets to cover liabilities, the pension may be protected by the Pension Protection Fund, up to certain limits. There is information at www.ppf.co.uk.