Are you confused about occupational pensions in Ireland? Well, this infographic explains in detail about the types of occupational pensions. It provides a comparison between defined benefit vs. defined contribution.
Occupational pensions are organised by employers to provide pensions to 1 or more employees on retirement, or to their surviving dependents upon the employees’ death. What is more, an employee can be part of an occupational pension scheme & also arrange a personal pension, but cannot contribute to both at the same time with respect to the same employment.
When it comes to the types of occupational pensions, the infographic spotlights contributory, non-contributory, funded and unfunded.
As far as defined benefit (DB) is concerned, in a DB pension scheme, the benefit entitlement is defined in some way. On the other hand, in a defined contribution pension scheme, the contributions are fixed by agreement.
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