What is an occupational pension?
Occupational pension schemes (also called Company Pension schemes) are when the employer organises a pension scheme for its employees. It is set up as a trust and run by trustees. Occupational pension schemes are either Contributory – where you give part of your earnings (typically 6% of your gross salary) in addition to your employer’s contribution, or Non Contributory where your employer makes all the payments. In either case they have to pay for a substantial part of the admininstration costs of the pension scheme, by law. And you also get tax benefit from HMRC (see Tax benefits for Occupational pensions).
