Consumer > Employees > What is a company pension scheme?
What is a company pension scheme?
A company pension scheme is run by trustees on your behalf. You have an individual account within the scheme.
Your payments are taken directly from your salary and paid by your employer to Scottish Life. We then invest them in investment funds until you start taking your pension benefits. And when that time comes, you will use the pension savings that you have built up to give you a regular income in your retirement.
At a glance
Tax benefits
To encourage you to save into a pension, the Government offers generous tax advantages:
- The payments you make benefit from tax relief at your highest rate as they are deducted from your salary before tax is calculated.
- Your savings are allowed to grow in a tax-efficient way.
- If you die before you start taking your pension, it can be paid as a tax-free lump sum to your family or someone else you choose. There are limits on the amount that can be paid - speak to your scheme trustees to find out the limits that apply to you.
We've based these details on our understanding of current taxation law and practice. They might be affected by any future changes in legislation and your own personal circumstances. If you need more information on tax you should get professional financial advice.
Making payments
This couldn't be easier. Your employer will deduct your regular payments from your salary and send them to us along with any payments they make on your behalf. So you don't need to worry about setting up direct debits or sending cheques.
Investing your money
The trustees of the scheme will normally decide on how to invest your pension savings. However, they will take your wishes into account when making their decisions.
Accessing your pension
The pension savings you've built up through this account will be used to provide you with a regular income. You can start taking your income any time from age 55, even if you're still working.
And you can choose from a range of options to help tailor your pension benefits to your needs.
Online service
These days, many of us do our banking online: and at Scottish Life we offer a similar facility for your pension. Our award-winning online service allows you to access lots of information about your account.
