Your employer also contributes into your pension fund.
Members monthly contributions do not cover the amount they receive when they retire. So it is down to the employer to pay the rest to cover the cost the pension fund incurs when a member retires. This means that the investment risk lies with the employer, not the employee.
The contribution rate paid by the employer is calculated by the pension fund actuary. It is based upon the particular membership profile of each employer. As a result employers pay different contribution rates.
Details of the individual employer contribution rates are shown in the latest annual report:
- in the 'investments' section of this site.