Are there different types of employer sponsored money purchase schemes?
The vast majority of employer sponsored money purchase schemes provide benefits based upon the money held in individual ‘pots’ specifically on behalf of each member. The amount in YOUR ‘pot’ at retirement will depend upon how much was put in by your employer and by YOU, and the investment returns achieved on those contributions. The scheme administrator or Trustees invest these contributions on your behalf in a range of investments and investment funds, some of which may be chosen by you. Any investment performance derived from each of these contributions becomes part of your ‘pot’. Charges to pay for the scheme will be paid either by the employer or by making deductions from what is put in on your behalf, or from the growing ‘pot’ itself. Often, the charges are a combination of all of these so that the cost is borne partly by your employer, and partly by you. Summary In an employer sponsored money purchase scheme your ‘pot’ will usually consist of – employer contributions plus YOUR co
