Dear all
Please could you help me as someone who is undergoing a group restructuring under TUPE.
We are part of a large group and about 20 of us are being transferred, under TUPE, from one employing company to another. We currently have two pension schemes, a final salary scheme and a good stakeholder scheme, roughly equal numbers in each based on how long we’ve worked for the company.
As part of the transfer, our pension arrangements are changing. The older staff, who are in the final salary scheme which closed to new members 6 years ago, are being transferred to another final salary scheme. This scheme is worse than their existing scheme – requiring employee contributions of 6% rather than the current 3%. Therefore, these people have been promised a 3% pay rise to leave them with the same net pay.
The newer staff are being transferred from a defined contribution scheme where the employer covered management fees and with higher employer contributions to another stakeholder scheme with less benefits and higher costs. We are not getting a pay rise and the new pension arrangements are clearly more than 3% of salary worse than the existing arrangement.
I am aware that, under TUPE, our employing group has no obligation to maintain our retirement benefits, both new schemes meet the minimum requirements.
I am also aware that membership of different pension schemes is explicitly allowed under the age discrimination rules.
My question is whether giving a pay rise to one set of workers but not the others based on how long they have been with the company (i.e. which pension scheme they are part of) would count as indirect age discrimination?
I’d also be interested in any other potential arguments you could see for making the arrangements more equitable.
Thank you for your time.
Bill Beveridge.
Bill Beveridge