Occupational Pension Definition
Occupational pension is a type of pension that can be offered to employees. Typically, these pensions are designed in such a way that they are beneficial for both the employer and the employees. There are several different types of occupational pensions, including DB pension plans and DC pension plans.
Employer pension
Generally speaking, an employer pension is a pension scheme that has been registered by an employer. It is a way to save for your retirement and provide a guaranteed benefit.
There are many types of workplace pension schemes. Different types have different rules. They also have different benefits. You should compare the benefits of each pension before choosing one.
One type of workplace pension is the defined benefit plan. This is usually based on the amount of salary that the participant receives in retirement. This benefit is often calculated based on the number of years that the participant has been working for the employer.
Another type is the money purchase scheme, also known as a defined contribution plan. These types of plans are funded by contributions from the employer and employee. The money is invested and grows over time. The value of the investment may go down or it may go up.
Some workplace pension schemes also offer other benefits. For example, some of them may pay a lump sum at retirement. You may also receive regular payments for life through annuity.
DB pension plan vs DC pension plan
DB and DC pension plans have their own merits. A …
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