ABSTRACT

Occupational pension schemes pre-date public pensions. A distinction can be made between company schemes which are sponsored by a single employer, and industry-wide schemes established by groups of employers. In some countries, most notably Germany and Japan, occupational schemes often provide retired employees with pensions financed on a PAYG basis. The weekly or monthly pensions bill is met from the operating revenues of the company. By contrast, in the UK and America, occupational schemes are almost always funded. Instead of paying someone else’s pension, employees and/or their employers make contributions to a fund which is used to provide them with a pension when they retire.