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Workplace pensions

Original and updating author: Kate Upcraft

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 and pension contributions)

Sector resources

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