Is the difference between group personal pensions and occupational pension schemes as follows? Group personal pensions: employer choose pension provider but the contract is between the employee and the pension provider Occupational pension schemes: the contract is between the company and the pension provider
Hi Broadly yes, with the Group personal pension, an insurer offers a facility for an employer to set up a personal pension for each of its employees. The insurer would administer the personal pensions together as one scheme but for each individual member the contract he or she has would be similar to that of an individual personal pension. Occupational pension schemes can only be set up by an employer under trust, whereas defined contribution (DC) personal pensions can be set up by the individual or employer. An employer's contribution is a mandatory requirement of an occupational pension scheme. Employers' contributions are not required on DC personal pensions. Please note that details around occupational pension schemes are outside the scope of SA2.
No Not quite, occupational schemes can be both DB and DC schemes. DC schemes are usually personal pensions or stakeholder pensions. Thanks Em
