A group money purchase pension scheme is defined by the Government as an occupational pension scheme. You pay money into a fund, which is then used to provide benefits for your employees when they leave, retire or die.
A group money purchase pension scheme is set up to run under trust rules. It's administered by trustees, who are obliged to operate the scheme within strict guidelines to provide security and protection for the scheme members.
Employees who join the scheme become members and each are allocated an individual fund. They may have to make additional contributions into the fund themselves. The money in the fund is invested on their behalf, and when they retire the fund is used to provide them with an income during their retirement with the option, if they want, of a tax-free lump sum.
How it works
Take a closer look at the finer details of a group money purchase pension.
Common questions
Looking for answers? You might find them here.
