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occupational pension schemes
There are two main types of Occupational Scheme, Final Salary/Defined Benefit Schemes and Money Purchase/Defined Contribution Schemes.
A Final Salary Scheme will provide a pension at retirement based on the number of years service with the company, the accrual rate of the scheme and your earnings at retirement. The funding for these benefits is calculated by the employer or it's actuary and therefore the risk element lies with them.
A Money Purchase Scheme will provide a pension at retirement based on the level of contributions that have been paid into the scheme and the performance of the underlying investment funds. The levels of contributions are predetermined by the employer and the employee and the element of risk/reward will depend on the selected investment fund.