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Law for Business

Knowhow - guidance - precedents

12 SEP 2012

Early retirement terms on a TUPE transfer

The Deputy Pensions Ombudsman has dismissed a complaint against Atos Origin (UK) Services Limited and Atos Origin Pension Trustees Limited.

The Deputy Pensions Ombudsman ruled that the right to take early retirement on an unreduced pension at age 50 did not apply to a deferred member of a pension scheme who had been involved in two successive TUPE transfers and whose scheme had closed to future accrual at the time of the second transfer. Although the employee was assured by his employer before the second transfer took place that his early retirement rights would not be affected, he was later denied an unreduced pension on the basis that he did not qualify under the scheme rules as he had by then stopped being an active member.

This determination illustrates the limitations of Beckmann rights for employees transferring under TUPE and highlights that the closure of a scheme to future accrual can lead to the loss of Beckmann rights that members might previously have gained.

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