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Can your employer change your pension scheme?Many employers are already in the process of changing their
pension arrangements or plan to do so. Members often ask if
such proposals are lawful and Prospect has taken legal advice
on a number of occasions.
The hard fact is that in almost all cases the employer will
have the right to terminate or amend pensions provision for
employees. There is no legal requirement on the employer to
make any pension provision for employees; except that, if
employees are not in, or able to join, an occupational pension
scheme or a group personal pension to which the employer contributes
at least 3%, then the employer must designate a stakeholder
pension scheme and provide a payroll deduction facility.
However, there are three possible routes for a legal challenge
to an employer's proposals
- with regard to their powers
under the trust deed
- there may be contractual issues
- there may be issues of misrepresentation.
This
article - which can only be seen by logged-in members - looks only at the first route.
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