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Corporate Pension

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Coporate Pensions

We have over 40 years experience working in pensions.

We have over 40 years experience working in pensions.

Important: Information is based on our current understanding of taxation legislation and regulations and are subject to change.

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Director / Executive Pension Plan (EPP)

Executive Pension Plans are tax-efficient savings plans set up by the company in which the contributions build up in a tax exempt fund. These are used at retirement to provide often enhanced tax free cash and/or a pension depending on the scheme.

They are normally established by company directors for their own benefit, but they then frequently include other valued employees.

Effectively, they are money purchase occupational pension schemes. They allow payments from an employer to be paid into a pension fund which is set up under trust, with the trustees responsible for the day-to-day administration.

Occupational / Company Pension Scheme (OPS)

These are employer sponsored schemes with trustees who are responsible for the schemes being run properly, legally and fairly. If your employer has a scheme it is generally in your interest to join because of the employer contribution which is, in effect, a tax-efficient benefit.

Company pensions are set up by employers for their staff. They can be final salary also known as defined benefit schemes. Either the employer or the employee or both contribute to the scheme on a monthly basis. When the employee retires, he or she receives a pension based on earnings and length of pensionable employment.

Alternatively an employer may set up a “defined contribution” or “money purchase” scheme. In this case the monthly contributions are put into a fund earmarked for that particular employee who, when he or she retires, is able to use the fund to provide income – although there is also the valuable option of taking part of the fund as a tax-free lump sum. One common option would then be to purchase an “annuity” with the balance.

Let PAF Hereford help with your company pension

With over 40 years experience in pensions PAF Hereford can help make an informed decision.  

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The value of your investment can fall as well as rise and is not guaranteed.

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