Types of pension schemes—beginners’ guide

Produced in partnership with Wyn Derbyshire of gunnercooke LLP

Practice notes

Types of pension schemes—beginners’ guide

Produced in partnership with Wyn Derbyshire of gunnercooke LLP

Practice notes

This guide is primarily aimed at trainees, newly qualified lawyers and other persons who are new to or unfamiliar with pensions law.

A pension scheme is essentially a form of savings vehicle or arrangement designed to provide benefits from the occurrence of a triggering event such as retirement or the death of a spouse or other person upon which the beneficiary was financially dependent.

Pension schemes can take various forms and can be found in both the public and private sectors, as well as provided by the State in the form of the state pension.

This guide looks at the following examples of the various types of pension schemes:

•
the state pension
•
private sector pensions
•
workplace pensions
•
occupational pension schemes
•
hybrid schemes
•
cash balance schemes
•
employer financed retirement benefit schemes (EFRBS)
•
personal pension schemes
•
self-employed pensions
•
public sector pension schemes
•
collective money purchase schemes (also known as collective defined contribution (CDC) schemes)

For further information, see Practice Note: Types of pension arrangements for employees.

The

Wyn Derbyshire

Partner, gunnercooke LLP

Wyn is a partner at gunnercooke LLP and specialises in pensions, trust and employment law in all industry sectors, dealing with the transactional, advisory and documentation aspects.

He also has wide experience of the pensions implications of heavyweight corporate transactions and flotations, the issues arising from the establishment and merger of pension schemes, and sex equalisation and other discrimination issues in respect of benefits provided by pension schemes. In addition, he provides advice to pension scheme trustees generally.

Recent transactions include advising Amcor on pension matters relating to the acquisition of Alcan business and the acquisition of Northern Foods PLC by Boparan Holdings.

He is a co-author (with Stephen Hardy and Stephen Maffey) of TUPE: Law and Practice, published by Spiramus Press (now in its 4th edition), and co-author (with Stephen Hardy and David Wicks) of Money & Work, published by Spiramus Press in August 2007. He has also written several other books and numerous articles on a variety of legal and non-legal topics.

Jurisdiction(s):

United Kingdom

Key definition:

Pension scheme definition

What does Pension scheme mean?

A pension scheme is a scheme or other arrangement which is comprised in one or more instruments or agreements, having or capable of having effect so as to provide benefits to or in respect of persons on retirement, on death, on having reached a particular age, on the onset of serious ill-health or incapacity or in similar circumstances.

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