Glossary

This relates to TUPE regulations. From April 2005 where an employer provided an occupational scheme, salary-related or money purchase, for their employees, when a transfer takes place the new employer is obliged to provide a pension for them. Although the new pension does not have to be the same as that offered by the previous employer, it must meet one of the following: Offer employees a salary-related scheme with benefits at least as good as the reference scheme^* test for contracting out^* purposes (i.e. actuary to certify that benefits are broadly equivalent to, or better than, previous pension); Ensure employees can join a salary-related scheme with benefits of at least 6% of pensionable pay for each year of service; Provide a salary-related, money purchase scheme^* or stakeholder scheme in which employer contributions match those of the employee up to 6% of basic pay