Pensions:

Traditionally the backbone of the package, an occupational pension scheme is designed to offer employees an income in retirement. In the past, the majority of schemes were defined benefit (final salary) schemes, but increasingly they are likely to be defined benefit plans, whether they are run by the employer themselves, or they offer group personal pension (GPP) or stakeholder. The schemes offer most employees a tax-efficient way to save for the future, as contributions are free of tax and national insurance. Increasingly schemes require employee contributions - which will be the case across the board from 2012 – from this date employers will also have to automatically enrol all staff in the pension (although they will have the opportunity to opt out). Many employers run schemes through salary sacrifice arrangements, where employees give up salary in exchange for a tax-efficient pension contribution..

Traditionally the backbone of the package, an occupational pension scheme is designed to offer employees an income in retirement. In the past, the majority of schemes were defined benefit (final salary) schemes, but increasingly they are likely to be defined benefit plans, whether they are run by the employer themselves, or they offer group personal pension (GPP) or stakeholder. The schemes offer most employees a tax-efficient way to save for the future, as contributions are free of tax and national insurance. Increasingly schemes require employee contributions - which will be the case across the board from 2012 – from this date employers will also have to automatically enrol all staff in the pension (although they will have the opportunity to opt out). Many employers run schemes through salary sacrifice arrangements, where employees give up salary in exchange for a tax-efficient pension contribution.