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Occupational Schemes

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Occupational pension schemes are quite simply pension arrangements put in place by employers to give their employees an income in retirement. Also known as Trust-based schemes (because they're run by a board of trustees) this type of arrangement can take two forms:

  • Defined Benefit (DB) schemes – sometimes referred to as final salary schemes, a DB scheme guarantees a certain level of pension, dependent on the level of contribution.
  • Defined Contribution (DC) schemes – known as money purchase schemes, a DC arrangement pays a pension that depends on how contributions have been invested over the lifetime of the pension.

Both have their advantages and disadvantages for employer and employee, and both throw up many issues and challenges, especially in today's economic climate. But Aspira offers advice and support in resolving these issues, including finding ways to reduce DB scheme deficits and improve take-up rates.

A question of education

It's all based on education – educating employees about their options (therefore reducing the risk of future litigation against an employer) and educating employers about how to maximise the value of their group schemes.