Current Size: 100%
What kinds of pensions do employers provide?
Employers can provide two different types of workplace pension arrangement. They may set up an occupational pension scheme, which will be managed by a board of trustees. Or they may make an arrangement with a pension provider such as an insurance company to provide a group personal pension or a group stakeholder pension.
A group personal pension or group stakeholder pension will always be a 'money purchase' pension – often called 'defined contribution' or 'DC', which is very similar to any other type of savings arrangement. An occupational pension scheme may either be a money purchase arrangement, or a salary-related pension – often called 'defined benefit' or 'DB' (although these are now uncommon in most of the private sector).