Anyone here know about Pensions and TUPE?
Posted by: Stuart M on 20 April 2006
I was outsourced 5 years ago and so lost my rights to a final salary pension scheme. The new company money pension scheme was very good as for my 5% they put in 12% (It would be 15% when I hit 50). But after 5 years I am now being in sourced back to the original company. But they refuse to let me back into the final salary scheme. The pension scheme I have (under TUPE) means the best they will do for my pension is if I put in 6% they will match it.
This to me, from my research, seems to be legally OK but IMOHO morally wrong.
If what is happening to me is true then a way for companies, that have pension problems, to reduce there liabilities is to outsource a department and then bring them back in house after changing the pension rules. Bingo new future final salary scheme obligations are removed.
Unfortunately the TUPE transfer back to my original employer happens on the 27th April 2006 and the new laws have only just come into force so legal advice varies as there have been no test cases.
Even worse, they want us to sign a compromise agreement. So far legal advice is complex and samples are:- You will sign away your TUPE rights, the compromise agreement is unenforceable, you have very little protection under employment law so go for what gets you the best package. Basically under English law as new TUPE regs only just came in and there are no test cases no one knows!
Anyone have any advice (I won't hold you to it and promise not to sue LOL) on where to go from here?
One final touch. When I moved from the original company to the outsource company I was grade mapped (i.e. downgraded ) this had an impact on flights, hotel accommodation etc. Now after 5 years and promotions I will now, be transferred back to my original company and after grade mapping will now be on a lower level than when I left! But this now impacts my pensions, health and life insurance.
The TUPE transfer back to my original employer I calculate will cost me around overall £10000a year in current, pension and health benefits. My salary was supposedly to increase to reflect any loss but it turns out this will be 56 pence per annum!
Any ideas out there?
This to me, from my research, seems to be legally OK but IMOHO morally wrong.
If what is happening to me is true then a way for companies, that have pension problems, to reduce there liabilities is to outsource a department and then bring them back in house after changing the pension rules. Bingo new future final salary scheme obligations are removed.
Unfortunately the TUPE transfer back to my original employer happens on the 27th April 2006 and the new laws have only just come into force so legal advice varies as there have been no test cases.
Even worse, they want us to sign a compromise agreement. So far legal advice is complex and samples are:- You will sign away your TUPE rights, the compromise agreement is unenforceable, you have very little protection under employment law so go for what gets you the best package. Basically under English law as new TUPE regs only just came in and there are no test cases no one knows!
Anyone have any advice (I won't hold you to it and promise not to sue LOL) on where to go from here?
One final touch. When I moved from the original company to the outsource company I was grade mapped (i.e. downgraded ) this had an impact on flights, hotel accommodation etc. Now after 5 years and promotions I will now, be transferred back to my original company and after grade mapping will now be on a lower level than when I left! But this now impacts my pensions, health and life insurance.
The TUPE transfer back to my original employer I calculate will cost me around overall £10000a year in current, pension and health benefits. My salary was supposedly to increase to reflect any loss but it turns out this will be 56 pence per annum!
Any ideas out there?