TUPE and pensions auto-enrolment

In October 2012, a radical change to pensions law took place with the introduction of auto-enrolment, which is being phased in gradually up to 2018. Advice from the Pensions Regulator says that where an employee changes employer as a result of a transfer, the transferee is responsible for assessing the worker with effect from the transfer date and where appropriate, automatically enrolling them. In effect, they are treated as a new joiner for that employer.

There is a potential conflict between the auto-enrolment provisions, which allow for contributions as low as two per cent, and the statutory obligation for transferees to match contributions up to six per cent. In February 2013, the government launched a consultation on draft Transfer of Employment (Pension Protection) (Amendment) Regulations to address this issue. The consultation has closed but the government’s response is still awaited.