As explained in our Spring 2013 Newsletter, in light of the introduction of the automatic enrolment of eligible employees into a pension plan, legislation was proposed to change the level of employer pension contributions a buyer would have to make in respect of an employee transferred to it under an asset transfer, where that employee had been a member of an occupational pension plan with the seller.

Since April 6, 2014, a buyer may now match the seller's pension contributions made in respect of the transferring employee prior to the transfer where the seller was required to make contributions and these were solely for the purpose of producing money purchase benefits. The buyer also retains the pre-existing option of matching the employee's chosen contributions up to a maximum of 6% of salary.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.