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Part 5U.K.Occupational and personal pension schemes: miscellaneous provisions

Pension protection on transfer of employmentE+W+S

257Conditions for pension protectionE+W+S

(1)This section applies in relation to a person (“the employee”) where—

[F1(a)there is a relevant transfer within the meaning of the TUPE regulations,]

(b)by virtue of the transfer the employee ceases to be employed by the transferor and becomes employed by the transferee, and

(c)at the time immediately before the employee becomes employed by the transferee—

(i)there is an occupational pension scheme (“the scheme”) in relation to which the transferor is the employer, and

(ii)one of subsections (2), (3) and (4) applies.

(2)This subsection applies where—

(a)the employee is an active member of the scheme, and

(b)if any of the benefits that may be provided under the scheme are money purchase benefits—

(i)the transferor is required to make contributions to the scheme in respect of the employee, or

(ii)the transferor is not so required but has made one or more such contributions.

(3)This subsection applies where—

(a)the employee is not an active member of the scheme but is eligible to be such a member, and

(b)if any of the benefits that may be provided under the scheme are money purchase benefits, the transferor would have been required to make contributions to the scheme in respect of the employee if the employee had been an active member of it.

(4)This subsection applies where—

(a)the employee is not an active member of the scheme, nor eligible to be such a member, but would have been an active member of the scheme or eligible to be such a member if, after the date on which he became employed by the transferor, he had been employed by the transferor for a longer period, and

(b)if any of the benefits that may be provided under the scheme are money purchase benefits, the transferor would have been required to make contributions to the scheme in respect of the employee if the employee had been an active member of it.

(5)For the purposes of this section, the condition in subsection (1)(c) is to be regarded as satisfied in any case where it would have been satisfied but for any action taken by the transferor by reason of the transfer.

F2(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)In this section—

Textual Amendments

F1S. 257(1)(a) substituted (with application in accordance with reg. 21(1) of the amending S.I.) by The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), reg. 1(2), Sch. 2 para. 13(2)

F2S. 257(6) omitted (with application in accordance with reg. 21(1) of the amending S.I.) by virtue of The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), reg. 1(2), Sch. 2 para. 13(3)

F3S. 257(7) repealed (6.4.2012 being "the abolition date" for the purposes of s. 15(1) of the amending Act) by Pensions Act 2007 (c. 22), ss. 15(4), 27(7), 30(2)(b), Sch. 4 para. 41, Sch. 7 Pt. 6 (with Sch. 4 Pt. 3); S.I. 2011/1267, art. 2(a)

F4Words in s. 257(8) substituted (with application in accordance with reg. 21(1) of the amending S.I.) by The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), reg. 1(2), Sch. 2 para. 13(4)

Modifications etc. (not altering text)

Commencement Information

I1S. 257 in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7