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Are you looking for Independent Financial Advice for Occupational Pension Schemes? If you have an existing pension scheme, would you like to reduce the administration cost?

Have you found that Investment advice for Occupational Pension Schemes is often based on a very simplistic approach? Are you after Independent Advice from someone who it the top of their game?

We can help! Contact us for a free consultation to discuss your Occupational Pension needs. We are a totally independent practice and can help you reduce costs whilst providing a great Occupational Pension Scheme for your staff.

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Occupational Pension Schemes

Occupational Pension Schemes are arrangements set-up by employers to provide retirement benefits for their employees.

Although the employer is responsible for sponsoring the Pension Scheme, it is actually run by a board of Trustees (with the exception of most public sector schemes). The board of Trustees is responsible for ensuring payment of benefits.

There are two different types of Occupational Pension Schemes:

•  Final Salary

•  Money Purchase

Final Salary – Occupational Pension

Final Salary Schemes are sometimes known as Defined Benefit schemes. Members contribute to the scheme with the promise of a certain level of pension. The amount of pension payable from such a scheme is dependent upon:

•  The length of time served in the Pension Scheme (known as pensionable service);

•  Earnings prior to retirement (known as final pensionable salary); and

•  The scheme's 'accrual rate'. The accrual rate is the proportion of salary that is received for each year of service. So, in a 60th scheme, the member will receive 1/60ths of their final pensionable salary for each year of service completed.

The employer holds the liability to ensure that their Final Salary Occupation Pension Scheme is adequately funded.

Money Purchase – Occupational Pension

Money Purchase Occupational Pensions are often referred to as Defined Contribution Schemes. Employers and employees contribute to the scheme. The money is invested for each scheme member to create a retirement fund. The amount of pension payable from this scheme is dependent upon:

•  The amount of money paid into the scheme (by the member and the employer);

•  How well the pension funds perform; and

•  The 'annuity rate' at the date of retirement.

There is no guarantee as to the level of benefits at retirement for the Occupational Pension Scheme member.

 

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