Occupational Pensions
In the U.K., employers typically operate one of two types of occupational pensions, known as defined-contribution schemes (money-purchase schemes) or defined-benefit schemes (such as final salary pension schemes). In both cases, workers receive tax relief on contributions.
Employee pension schemes vary around the world. In India, the Employees' Provident Fund applies to any company in 180 specified industries with 20 or more employees and is a contributory fund. Most employers also provide gratuity, which is a lump-sum payment made at the end of the employment period, based on the duration of employment. Some companies are moving towards more flexible defined-contribution superannuation schemes. The Indian government recently launched a new voluntary pension scheme aimed at those not covered by formal retirement benefits.
