A retirement savings scheme funded by employer and/or employee contributions.
A pension is a long-term savings arrangement that provides income during retirement. In the UK, workplace pensions are mandatory under auto-enrolment legislation — employers must contribute at least 3% of qualifying earnings, while employees contribute at least 5%. Pension contributions are typically deducted directly from payroll. Types include Defined Contribution (DC) schemes (where benefits depend on contributions and investment returns) and Defined Benefit (DB) schemes (where benefits are calculated based on salary and service). HR software manages pension enrollment, tracks contributions, and generates pension reports.
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