Shayala McRae: There is scope to make TUPE pension rules work more efficiently in practice
The Society of Pension Professionals (SPP) has called for targeted reforms to make the TUPE rules work more efficiently in practice.
In its response to the Department for Business and Trade's call for evidence on the Transfer of Undertakings (Protection of Employment) regulations (TUPE), the trade body concluded that, while employee pension rights are already well protected during business transfers, there are areas where legislation could be simplified and clarified.
The SPP said the current framework – which combines TUPE protections, auto-enrolment requirements and existing pensions legislation – provides strong safeguards for employees whether they belong to occupational or personal pension schemes.
It cautioned that introducing additional pension protections could "significantly increase costs for employers" at a time when businesses are already facing rising employment costs.
But the SPP also identified two areas where practical improvements could benefit both employers and employees – aligning pension consultation requirements with TUPE transfers and providing certainty on pension scheme transfers.
SPP legislation committee chair Shayala McRae said: "As the SPP's response makes clear, employee pension rights are already well protected under TUPE. However, there is scope to make the rules work more efficiently in practice.
"We would like to see pension consultation requirements better aligned with the realities of TUPE transfers, and greater legislative clarity to allow employees to be moved into equivalent or better pension arrangements without unnecessary complexity or cost. These changes would simplify administration for employers while maintaining strong protections for employees."
The SPP consultation response is available here: https://the-spp.co.uk/document-category/consultations/
