A pension scheme operated by an employer or group of employers. Occupational pensions can be contrasted with the state pension schemes or personal pensions, which are taken out by individuals. Schemes can assume a number of different forms, though common to all is the principle of employer contributions to the pension fund. In many cases, though not always, employees will also make regular contributions through deductions from their weekly wage packet or monthly salary. Occupational pension schemes cover a large proportion of the working population in the UK and are a valued ‘security benefit’. Schemes are closely regulated through legislation, and a variety of tax incentives are in place to encourage companies to establish schemes and employees to join them. The Occupational Pensions Regulatory Authority has responsibility for the overview of occupational pensions in the UK. [See benefits, deferred pay, indirect pay, and pension.]
Subjects: Economics — Human Resource Management.