Occupational Pension Schemes
Occupational pension schemes also known as private pension schemes are established up by employers and can provide benefits including a lump sum (within certain limits), and pension income in retirement.
These benefits will generally be based on;
your final earnings (final salary defined benefit schemes) or
your average earnings throughout your career (career average defined benefit schemes) or
the value of your pension fund at retirement (defined contribution schemes).
Apart from benefits on retirement, pension schemes can provide benefits to dependents on death in service or death after retirement. Pension benefits are also portable and need not be frozen; when your employment status changes meaning that you can transfer to another scheme when you change employers. You could also choose to leave your accumulated benefits in a scheme and access the pension at retirement; this is referred to as a deferred benefit.