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Master pension plan |
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Master pension planSee: Prototype planMaster pension plan Similar MatchesNational Insurance Pension (State Pension)National Insurance Pension (State Pension)Regular income from the state paid to retired people who have made contributions during their life. In the UK, the retirement age for men is 65 and for women is 60.To qualify individuals must have made full National Insurance (NI) contributions. Men must have worked for 44 years and women for 39 years, or have received a special waiver such as invalid care allowance.In April 1978 the government introduced another pensions scheme (the State Earnings Related Pensions Scheme or SERPS) to provide a pension related to the earnings of employed people only. SERPS was replaced by the Second State Pension or S2P in April 2002.Employees make payments to S2P and the NI Basic Pension by way of Class 1 National Insurance (NI) contributions. (Employers also pay Class 1 contributions on all the employee's earnings). Employees may elect to contract out of S2P and pay Class 1 contributions via a rebate which may be invested in an occupational pension or a personal pension plan.There are two main pensions: the NI Basic Pension and S2P. There is also an additional benefit, the Graduated Pension or Graduated Retirement Benefit. This was a state scheme which existed between April 1961 and April 1975 for people earning over £9 per week. People who were employees during any part of this period and who paid Graduated NI Contributions will receive a Graduated Retirement Benefit. Women over 60 and men over 65 can if they wish continue in employment even when they are receiving the NI Pension. Guaranteed minimum pensionGuaranteed minimum pensionThe minimum pension payable by a pension scheme in order that members may contract out of S2P (State Second Pension). Personal pension planPersonal pension planA savings scheme introduced by the government in 1985 to enable the self employed, and employees working for companies not operating a group pension scheme, to build up a pension fund for retirement.PPPs are money purchase schemes and effectively replace what was known as a retirement annuity contract (RAC).Contributions to PPPs receive full tax relief up to maximum given percentages of net earnings for a range of ages.Life assurance may be purchased with up to 5% of net relevant earnings which will receive full tax relief. This percentage is included within the maximum contributions allowable.An employer may contribute to a person's PPP but this is not obligatory.Personal pensions can move with individuals when they change jobs.A PPP may be used to contract out of S2P. Flexible pensionFlexible pensionAlso known as deferred income and income drawdown. Simplified employee pension planSimplified employee pension planA pension plan, set up by an employee, in which both employer and employee contribute to an Individual Retirement Account (IRA). Further SuggestionsState Earnings Related Pension Schemedeferred state pension unfunded pension plan Keogh pension plan Pension Schemes Registry occupational pension scheme Funded pension plan State Pension Underfunded pension plan basic state pension Pension plan State Second Pension company pension scheme Unfunded pension plan Pension Benefit Guaranty Corporation Salary Reduction Simplified Employee Pension Plan (SARSEP) Contingent pension liability appropriate personal pension plan group personal pension pension fund Pension reversion equivalent pension benefit Pension plan Advance funded pension plan non contributory pension plan |
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