What is the term for the regular contributions paid by the employer to the employer pension scheme?

What is the term for the regular contributions paid by the employer to the employer pension scheme?

• A. Ordinary annual contributions
• B. Special contributions
• C. Retained lump sums
• D. Extra contributions

Answer: (A)

Regular employer funding to a pension scheme is described as ordinary annual contributions. This term signals the standard, recurring payments the employer makes to fund ongoing service accrual each year. It contrasts with special contributions, which are irregular top-ups to address funding gaps; retained lump sums, which are funds kept as a lump sum rather than regular payments; and extra contributions, which is a more general phrase not specifically the routine funding pattern. Therefore, ordinary annual contributions best describe the regular, ongoing employer payments.

Regular employer funding to a pension scheme is described as ordinary annual contributions. This term signals the standard, recurring payments the employer makes to fund ongoing service accrual each year. It contrasts with special contributions, which are irregular top-ups to address funding gaps; retained lump sums, which are funds kept as a lump sum rather than regular payments; and extra contributions, which is a more general phrase not specifically the routine funding pattern. Therefore, ordinary annual contributions best describe the regular, ongoing employer payments.