Types of pension schemes—beginners’ guide
Produced in partnership with Wyn Derbyshire of gunnercooke LLP
Types of pension schemes—beginners’ guide

The following Pensions practice note produced in partnership with Wyn Derbyshire of gunnercooke LLP provides comprehensive and up to date legal information covering:

  • Types of pension schemes—beginners’ guide
  • The state pension
  • Private sector pensions
  • Workplace pensions
  • Occupational pension schemes
  • Final salary schemes
  • Career average schemes
  • Money purchase schemes
  • Small self-administered schemes (SSASs)
  • Hybrid schemes
  • More...

Types of pension schemes—beginners’ guide

This guide is primarily aimed at trainees, newly qualified lawyers and other persons who are new to or unfamiliar with pensions law.

A pension scheme is essentially a form of savings vehicle or arrangement designed to provide benefits from the occurrence of a triggering event such as retirement or the death of a spouse or other person upon which the beneficiary was financially dependent.

Pension schemes can take various forms and can be found in both the public and private sectors, as well as provided by the State in the form of the state pension.

This guide looks at the following examples of the various types of pension schemes:

  1. the state pension

  2. private sector pensions

  3. workplace pensions

  4. occupational pension schemes

  5. hybrid schemes

  6. cash balance schemes

  7. employer financed retirement benefit schemes (EFRBS)

  8. personal pension schemes

  9. self-employed pensions

  10. public sector pension schemes

For further information, see Practice Note: Types of pension arrangements for employees.

The state pension

The state pension has taken various forms over the years, and immediately prior to 6 April 2016, it took the form of a basic pension, with an ancillary (salary-related) pension known as the Second State Pension (S2P) (though, in certain circumstances, it was possible in the years prior to April 2016 for an individual to forgo the S2P element of the state pension in exchange for contracted-out benefits provided under a

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