»Ê¹ÚÌåÓýapp

An occupational pension scheme is a scheme that is provided by an employer to provide benefits to members in relation to their service as employees. »Ê¹ÚÌåÓýapp scheme may be defined benefit or defined contribution (or a hybrid). It may be provided by the employer themselves, usually via a trust arrangement, or by an insurance company on their behalf.

Small self-administered scheme (SSAS)

A SSAS is a type of occupational pension scheme that is available for up to 12 members. It is often used by sole traders, directors and family businesses. »Ê¹ÚÌåÓýapp members have control over investment policy, subject to certain statutory restrictions on the type of assets that can be held. »Ê¹ÚÌåÓýapp description ‘smallâ€� refers to the number of members and not to the amount held within the fund which can be very substantial.

Deferred annuity contracts (buyout/section 32 policies)

A deferred annuity contract is a policy or contract bought from an insurance company, using funds from a registered occupational pension scheme. It provides an annuity to the member at some time in the future. A deferred annuity contract is a separate arrangement to the original pension scheme. Such contracts are often referred to as:

• ‘buyout policiesâ€� as the members rights are bought out of the original scheme or
• ‘section 32 policiesâ€� - from the provision in FA81/S32.

National employment savings trust (NEST)

»Ê¹ÚÌåÓýapp NEST is a default pension scheme that can be used by employers to meet their legal obligations (introduced from October 2012) to provide access to a pension scheme and to auto enrol their employees. It is a defined contribution scheme (IHTM17020) and can be used alongside any existing scheme. It is designed to be low cost and will be operated by a non-profit corporation.

Additional voluntary contributions

»Ê¹ÚÌåÓýappse are products designed to top up occupational pension schemes. »Ê¹ÚÌåÓýappy are known as additional voluntary contributions (AVCs) when run by the employer and free standing additional voluntary contributions (FSAVCs) where the member takes out an individual plan with a financial institution such as an insurance company.