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Letter O

Occupational pension scheme

A pension scheme provided by an employer. 

There are two types of occupational pension scheme Final Salary and Money Purchase. 

Final Salary is salary and service, basically you get a fraction of pensionable salary for every year you work such as 1/60th so if you work 30 years you will get 30 times 1/60th of your final salary as a pension.

Money purchase is simple all you get is an income from the fund that is built up from the money you invest. So the more money you put in the more you get out and to most this is with very little limitations.