What are Occupational Pensions?
An occupational pension scheme is established by an employer to provide retirement benefits and other benefits, to a group of employees. An occupational scheme can be defined benefit or defined contribution by design as explained above. An occupational scheme can gain Inland Revenue approval which gives valuable tax relief on member’s contributions and the tax free cash sum which is payable at retirement. A member of an occupational pension scheme can be elected as a Member Nominated Trustee (MNT). A MNT sits on the board of trustees and has the same powers as any other trustee. MNTs are nominated and selected by the members of the occupational pension scheme. New legislation due to come into force in autumn 2002 requires occupational pension schemes to have at least one-third MNTs (presently, employers can opt-out of the MNT regulations). The responsibilities involved with being a trustee can seem onerous, but the role of a MNT is important as it reinforces the trustee’s statutory dut
