1) Personal Pension Arrangements
These schemes are taken out by the self employed, by those who are employed and not eligible to join a company scheme and by employers for employees. They operate on a money purchase basis. In addition, transfers taken from occupational pension schemes to personal pension arrangements will operate on a money purchase basis.

2) Occupational Money Purchase
As an alternative to a final salary scheme, an employer may offer a money purchase occupational pension scheme. Under a money purchase scheme, as the name suggests, the employer promises to pay a certain sum into the scheme, which is then invested on your behalf. When you reach your scheme retirement age, your retirement fund must be used to provide a pension for you. Your ultimate pension will depend upon the level of contributions made and the investment return achieved.