A Company Pension is set up under a Trust by an employer, company or individual, to provide retirement benefits for those included within it. A Company Pension plan can include any number of employees from one upwards.
There are two types of Company Pension:
Defined Benefit – this is where employees are paid a pension based on their salary at the time of retirement (or an average over the previous years) together with the number of years of service.
Defined Contribution - this is where the employees pension is determined solely by the contributions of the employer and where applicable employees and the investment returns earned on those contributions.
There are limits as to the amount an individual can contribute to their pension scheme and these are:
Up to age 30 years of age 15% of net relevant earnings
30 up to 40 years of age 20% of net relevant earnings
40 up to 50 years of age 25% of net relevant earnings
50 up to 54 years of age 30% of net relevant earnings
55 up to 59 years of age 35% of net relevant earnings
60 years of age plus 40% of net relevant earnings
For further information on Company Pensions, a review of your existing plan or a consultation on new plans please contact us.
