Private sector employers could be liable for the early retirement pensionbenefits of staff transferred from the public sector following a ruling by theEuropean Court of Justice. The ECJ decided that employment terms entitling a female employee, KatiaBeckmann, to an early retirement pension and lump sum if made redundant, shouldhave transferred with the employee from her public sector employer to her newprivate sector employer. John McMullen, head of employment law at Pinsent Curtis Biddle, said thecase should make private sector employers involved in Transfer of UndertakingsProtection of Employment agreements with the public sector extra vigilant. “Employers should be especially careful in respect of TUPE transfersand seek an indemnity (an agreement where the public sector employer undertakesto remain liable for certain benefits) from a transfer in respect of thetriggering of such early retirement benefits,” he said. Beckmann was transferred under TUPE from an NHS trust to a private sectoremployer. When she was made redundant in 1997 she argued that, as she would have beenentitled to an early retirement pension and a lump sum under the terms of herNHS employer, she was still entitled to those benefits. Benefits for old age provided under occupational pension schemes do nottransfer under TUPE, but Beckmann persuaded the court that this exemption onlyapplies when an employee reaches the end of their normal working lives. Related posts:No related photos. Previous Article Next Article Early retirement rights protected under TUPEOn 2 Jul 2002 in Personnel Today Comments are closed.