Workplace pensions

Original author: Kate Upcraft

Updating author: Ian Holloway

XpertHR editor: Zuraida Curtis

Summary

• As well as helping it meet its statutory obligations, the provision of a workplace pension can be a valuable part of an employer's reward strategy. (See Why offer a pension scheme?)
• There are two main forms of pension scheme: occupational schemes, which are run by trustees and contract-based schemes, which are provided via an insurer. (See Types of workplace pension scheme)
• Defined-benefit (ie final-salary) pension schemes guarantee an income on retirement, whereas income on retirement from a defined-contribution pension scheme depends on the investment return on contributions into the scheme. (See Types of workplace pension scheme)
• Employers' liabilities in relation to pensions vary considerably, depending on the type of pension that they offer. (See Employers' liabilities)
• There are tax advantages attached to being a member of a workplace pension scheme. (See Tax relief and pension contributions)