An occupational pension scheme is a retirement savings plan provided by an employer for its employees. Staff who are members of a company pension plan benefit from a favourable income tax and national insurance (NI) break on contributions. The defined benefit plan (final salary) used to be the most popular scheme on offer, but now stakeholder, group personal pension (GPP) and money purchase (all defined contribution schemes) are becoming more popular; while there is some interest in career average and hybrid pension arrangements.†
The pension scheme is a key benefit for employees in the UK, and by 2012 all companies will have to auto enroll all staff into some sort of pension arrangement, or use the incoming National Savings Pension Scheme (NPSS) also known as personal accounts.
Additional voluntary contribution (AVC)
Bond funds (corporate bonds and gilts)