| Commentary

33.1 Occupational pension schemes

| Commentary

33 Pension provision for directors and other company employees

33.1 Occupational pension schemes

An occupational pension scheme is a pension arrangement which an employer sets up to provide its employees with income in retirement. The availability of such a scheme may be a strong incentive for directors and other employees to join the company so it can be a useful tool in recruitment. Although the employer sponsors the scheme, the responsibility for running it is entrusted to a board of trustees (at least in the private sector) and it is this board which is responsible for ensuring that the correct benefits are paid.

Most occupational pension schemes are now money purchase schemes. In other words, the employer and employees contribute1 to the scheme,

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