Company Pension Schemes

There are several different types of company pension scheme although the most commonly used are the Final Salary and Money Purchase types of scheme. For information on transferring from a company pension scheme, please refer to the Company Pension Transfer section.

Transfer your personal pension into a Final Salary Scheme - Also known as a "Defined Benefit Scheme" where your pension is based on the number of years you have worked for the employer and your final salary over the last few years before retirement, or on leaving the scheme indexed to your retirement. It is the employer's responsibility to ensure there are enough funds within the scheme to provide this element of guarantee and will have to top up the fund if there is a shortfall.

Transfer your personal pension into a Money Purchase Scheme - Also known as a "Defined Contribution Scheme" where your pension is based on the final value of your fund. This is determined by the performance of the underlying funds and the level of annuities at the time you retire. There is no employer undertaking to pay you a specified level of pension at retirement, as happens with a final salary scheme.