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Company / Occupational Pensions

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company pensions

Occupational schemes are set up by employers for their employees. There are two types of schemes, Public and Private Sector. 


Public sector schemes usually offer a pension accrual of around 1/80th of your final salary.  This is for each year of your service with the Firm up to a maximum of 40 years, you would also get a tax free lump sum up to one and half times your final salary.

Private sector schemes can be either money purchase (defined contribution schemes)  or final salary schemes (defined benefit schemes). 

 

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Richard Day, 28 April 2009