Occupational pension scheme

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OVERVIEW - OCCUPATIONAL PENSION SCHEME
A pension scheme, established under separate trust, set up by a company, trade association or institution for the specific benefit of employee(s). This is not the same as a Group Personal Pension Scheme, or Group Stakeholder Scheme which comprise a company sponsored group of individual pension arrangements.

Final Salary Scheme
A company or occupational scheme (see above) whereby your pension is based on your years of service in the scheme and your final pay at the time you retire. A typical final salary scheme might see you accrue pension at a rate of 1/60ths of your final pay; thus, someone retiring at the normal retirement age of the scheme with 20 years service, earning Ł30,000 per year at retirement, would have earned a pension of Ł10,000 per year.

Money Purchase Scheme
A company pension where contributions made by you and / or your employer grow through investment return so that the resulting pot of money is used to buy pension benefits when you retire. The amount of pension that you receive will depend upon the amount of money in your "pension pot" and the rate at which the fund converts into pension. This is known as the "annuity rate" and will be based on your age at retirement and prevailing annuity rates.

Our preferred pension partner is Brian Mole IFA Ltd, which is authorised and regulated by the Financial Services Authority. Information given is for general guidance only, and specific advice should be taken before acting on any of the suggestions made. Any information we pass to our preferred partner will only be used for the purposes of providing you with information or a quotation unless specified by yourselves.