If you’re being transferred to a new employer, such as after a takeover or merger, TUPE laws mean your existing pension money is safe. But you might have to start paying into a different pension scheme. Here’s what you need to know.
Are pensions covered by TUPE?
If your job is being moved to a new employer in the UK, you’re often protected by TUPE laws. TUPE stands for Transfer of Undertakings (Protection of Employment) and essentially means:
you keep all the rights you have with your current employer, and
the money you’ve already saved into a workplace pension is safe.
But your existing pension scheme doesn’t need to be transferred across.
If you’re already receiving your pension, any change to your old employer shouldn’t affect you.
When does TUPE apply?
TUPE typically applies if your employer changes owners and its name. For example, this might happen if your employer:
is taken over by another company
merges with another company
asks another company to manage your job role (outsourcing)
takes back the management of your job role from another company (insourcing).
If your employer has changed owners but keeps its name, TUPE won’t apply.
For more help, see Can my employer change my pension scheme?.
Do pensions transfer under TUPE?
Your workplace pension often won’t transfer over to your new employer under TUPE. Instead, you’re usually offered an alternative pension scheme to pay into.
Your new employer doesn’t have to offer exactly the same deal as your existing pension, but there are things they must do:
| Type of pension scheme | What your new employer must do |
|---|---|
|
Defined contribution or defined benefit pension set up by your employer. |
You must be offered either a defined contribution scheme (matching your contributions between 3% and 6% of your basic pay or qualifying earnings) or a defined benefit scheme with a guaranteed pension amount. |
|
Personal or stakeholder pension you set up, and your employer pays into. |
Your new employer must match what your old employer paid in if it’s a condition of your contract, or a minimum of 3%. |
If you have a public sector pension scheme, like working for the government or NHS, your new pension will usually match what you had before or be very similar.
For more help, including the pros and cons of bringing all your pensions together, see our guide Making the most of your pensions.
Get free advice about your situation
For confidential help and advice, you can call the Acas helplineOpens in a new window on 0300 123 1100 (Monday to Friday, 8am to 6pm).
The helpline covers all employment law queries and is run by the Advisory, Conciliation and Arbitration Service, an independent organisation funded by the government.
Need more information on pensions?
Call our helpline free on 0800 011 3797 or use our webchat. One of our pension specialists will be happy to answer your questions.
Our help is impartial and free to use, whether that’s online or over the phone.
Opening times: Monday to Friday, 9am to 5pm. Closed on bank holidays.
