It can be possible for the pension to be paid before 55 in the event of ill health. As per subject line. Public sector occupational pensions. Defined contribution: Your pension depends on the amount of money put into the scheme, how well the funds have been invested, the level of charges applied to your fund, and then how much pension your money will buy when you need to retire. Up to 25% of your accumulated fund can be withdrawn as a tax-free cash lump sum with the balance used to provide an income. Personal pensions. Your scheme may also offer an additional voluntary contribution scheme and you can also make additional pension contributions through a stakeholder or personal pension scheme. It also explains the impact on your pension of a change in circumstances, for example, changing your job or a relationship breakdown. Read UNISON’s response. Personal pensions are managed by a life assurance or investment company. These include taking out an annuity and income drawdown, or a combination of both. They can be personal pensions arranged by you or workplace pensions arranged by your employer. 1987/1110) and the Occupational Pension Schemes (Disclosure of Information) Regulations 1996 (S.I. If you change jobs, your group personal pension is usually automatically converted into a personal pension and you can continue paying into it independently. What happens to my money that I have paid in? Find out more about cookies and how we use them. Personal Retirement Savings Accounts (PRSAs) A PRSA is a type of personal pension that is more flexible than the traditional personal pension plan. Email pt.core@maps.org.uk. For example, there are many different types of occupational pension scheme as they can offer different types of benefit or be aimed at different groups of employees. This is a type of pension where what you get on retirement depends on the amount invested, investment performance, level of charges and the rate you convert your fund into a pension at retirement (known as the annuity rate) . We have produced a number of pension calculators to help you decide. Updating author: Kate Upcraft. Alternatively, you can also complete our form online. This means that your PIP would continue, unaffected, if you started to draw your NHS pension. We offer Group Pension, Group PRSA and Fusion arrangements. Occupational pension Nowadays this is called a workplace pension – though sometimes also known as employer, company, works or work-based pension schemes. You should also be able to switch between funds, should you wish to although there may be a charge associated with this. Do this with any previous employers whose pension schemes you are still part of. Other people are also able to contribute, and you can contribute to other people's personal pensions. While higher risk funds can potentially provide higher returns over the longer term, these returns can be unpredictable. These are either “defined benefit” pensions – usually final salary or career average (revalued earnings) schemes – or defined contribution/money purchase schemes. When taking benefits from a defined contribution pension schemes, you may be able to draw down amounts up to the whole value of your remaining pension fund as taxable lump sums. So unless you are absolutely sure, you should get professional independent financial advice. This is a personal choice based on what you can afford. You should check with your pension scheme administrator to see if your scheme allows you to buy added years or additional pension. For more information about how personal pensions and stakeholder pensions work, see Personal pensions. You can help by becoming a UNISON branch. In the broadest terms, there are two types of occupational pension commonly available to you. You might still see ‘occupational pensions’ mentioned as a broader term to describe older pensions that were offered in the workplace before the automatic enrolment regulations came in. However, if they, for instance, are working in the notary or healthcare sector or in ports, they can arrange a supplementary pension with their occupational pension fund. If you change jobs, your group personal pension is usually automatically converted into a personal pension and you can continue paying into it independently. Find out more about other kinds of pensions. Occupational Private Pension Systems Comparing occupational pension arrangements is a difficult task. If you are an employee, ask your employer if they have an occupational pension scheme in place for you to join. When you decide to receive a regular income, the amount of income you receive depends on the type of pension that you've selected. There are special rules about what happens to your pension if you have automatically enrolled into a workplace pension and you leave your job. Employers are increasingly turning to such schemes as they offer much less risk to them and instead place it all on the employee. If you are employed, you may be covered by an employer-sponsored occupational pension scheme or relevant public sector scheme. The information contained within this article is not a complete or final statement of the law and is based on the laws of England, Wales, Scotland and Northern Ireland. Stakeholder pensions are a type of personal pension which have to meet certain conditions. Please see our DC Factsheet at h. Defined benefit: this type of pension means you’ll get a pension based on a percentage of your earnings. Personal pensions or private pensions mean pensions that are organised individually by self-employed people or employed people who do not have an occupational pension scheme. A pension specialist from our team will be happy to help with whatever pensions-related question you have. If you continue to work full time and you have no need for the additional pension income, you may want to defer taking your pension until you stop working or reduce your hours. Broadly speaking, the greater your salary and length of service the bigger your pension should be. Being a member of an occupational pension scheme could however have affected your pre April 2016 state pension entitlement if it was “contracted-out” of it. The employer can offer an occupational pension scheme, such as final salary pensions where the benefits are related to the member's earnings at retirement and length of service and this is known as a defined benefit scheme. Who provides personal pensions. © Copyright 2020 Privacy policy Whichever fund or funds you invest money in, the value of these funds can go down as well as up. 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