Paragraph 10 Pension arrangements for new joiners to an outsourced workforce
The service provider will be required to offer new recruits taken on to work on the contract beside transferees one of the following pension provision arrangements:
membership of a good quality employer pension scheme, either being a contracted out, final-salary based defined benefit scheme, or a defined contribution scheme. For defined contribution schemes the employer must match employee contributions up to 6%, although either could pay more if they wished;
a stakeholder pension scheme, under which the employer will match employee contributions up to 6%, although either could pay more if they wished.
On a retender of a contract to which this Code applies the new service provider will be required to offer one of these pensions options to any staff who transfer to it and who had prior to the transfer a right under the Code to one of these pension options.