An Occupation Pension is an arrangement between you as an employee and your company to provide a pension for you upon retirement. Sometimes a group of companies will provide an occupational pension for their employees. An occupational pension scheme is often called superannuation in the public sector. Most occupational pension schemes provide an income for you upon retirement, as well as benefits for any dependants when you die. Some schemes also provide a tax-free lump sum when you die.
Occupational Pensions and the State Pension
An employee without an occupational pension scheme builds up additional State Pension on top of the basic State Pension. If you have an occupational pension, you still receive the basic State Pension as well as the additional State Pension. You may however choose to contract out of the additional State Pension and choose to instead to rely on your occupational pension scheme as well as your basic State Pension. If you do so, you may still be able to build up entitlement to a small amount of State Second Pension. Most people choose to contract out of an additional State Pension if they have an occupational pension scheme.
For more information about occupation pensions, please select from the list below:
