Clarification on non-occupational pension schemes, Redundancy Payments Service (‘RPS’) (July 2024) –
Non-occupational pension scheme liabilities transfer in a TUPE sale:
RPS will accept claims for non-occupational pensions when a TUPE sale has been identified. In these specific cases, the pension team will make investigations to confirm when the sale / transfer took place. As long as the insolvency event happened before the sale, then these claims can be assessed. Please see document below which contains information issued to the insolvency practitioners that challenged the below guidance.
Non-occupational pension contributions paid by the RPS are not preferential
For non-occupational pension schemes, the owed values for both employee and employer contributions will be classed as non-preferential. This information has been passed to our pension team who will ensure this guidance will be followed for future claims.
We are unable to update / amend any previous claims that have detailed a preferential claim with regards to non-occupational schemes. Insolvency practitioners can make a request to our pension team to re-visit any claim previously submitted in which they wish to clarify the preferential / non preferential claim associated with the pension.
UPDATE, 4 September 2024
If there is no TUPE scenario then the normal rules within s124(1) of the Pensions Act 1993 legislation apply, that is that group personal pensions will be dealt with in the same way as occupational pensions whether the company is in liquidation or administration. As long as the company is formally insolvent and there remained unpaid relevant contributions owing to the scheme, then the SoS will make payment.