Group/Employer pension

These types of pensions are set up by an employer for the benefit of the employees of a company. Schemes can range in size from two to thousands of members. The scheme assets are held in trust for the benefit of members. The scheme trustees decide on how the scheme invests accumulated funds. Each scheme is unique with different rules and benefits for members. Scheme members may have some level of choice over their account within the scheme, this choice is usually limited to the funds chosen by the scheme trustees on behalf of the members.

Tax Relief:

Contributions made by individual scheme members to group pension schemes are entitled to tax relief, in accordance to the individuals marginal income tax rate.

Scheme members can backdate once of contributions paid within the current tax year to the previous tax year, once it has been made before October 31st. It is also possible to carry forward any excess contribution made, to gain tax relief in future years.