Three main reasons lie behind the high profile media coverage of pensions in recent times.First, the Robert Maxwell affair highlighted the risks attached to occupational pensions.

Secondly, the Goode report attempted to provide measures to counteract some of the risks relating to occupational pensions raised in this case.

Thirdly, many people realised they had received poor advice from salespeople of personal pensions - leading to compensation claims and potential litigation.There are three main forms of pension available.

First, the state scheme, which consists of two elements: the basic state pension and the state earnings related pension (SERPS).

Secondly, employer/ occupational pensions of two varieties: final salary and money purchase and, thirdly, personal pensionsThe basic state pension is payable to all employees who satisfy the relevant national insurance contribution conditions.

The state earnings related pension (SERPS) - a form of earnings-related scheme additional to the basic state pension - is usually payable to employees who do not have contracted out occupational or personal pensions.Occupational pensions are either final salary or money-purchase.

In the former, the employer is obliged to provide the employee with a pension based on a fixed percentage of the employee's final salary.

The employer and employee contribute an agreed proportion of the employee's salary towards the pension.The actual percentage depends on the length of service of the employee in the relevant employment: for example, teachers receive one eightieth of their highest salary in the last three years of employment, multiplied by the number of years' service.

Therefore, if a teacher works for 35 years, his or her annual pension will be thirty five eightieths multiplied by his or her highest salary in the last three years.Often a lump sum is payable in addition on retirement.

For example, a teacher is entitled to a lump sum of three eightieths multiplied by his or her highest salary of the last three years or, effectively, his or her highest salary over the three-year period multiplied by his or her number of years' service in teaching multiplied by three.

The pension is usually protected against inflation.There are a number of issues lawyers should consider.

First, it should be borne in mind that pension provision is normally of two kinds - income and capital.

The former is often thought to be more beneficial since reliance on capital is hazardous because income on capital is subject to the ever-changing interest rates of institutions which, in turn, determine their interest return in relation to market forces, particularly bank base rate.Secondly, proper attention should be paid to the differing demands on a pensioner.

For example, there may arise a need to pay high fees for residential nursing home care.The main choice as to the form of pension provision is between the occupational pension and a personal pension (with or without the addition of any free-standing voluntary contribution).

Both types of pension scheme normally involve contracting out of SERPS.The self-employed person generally has no choice because he or she cannot join an occupational pension scheme but must rely on personal pension provision through one of the many assurance company providers.Both occupational and personal pensions are required by law to provide, at the very least, benefits equivalent to thos e provided under SERPS.The main pros and cons are as follows.

Under an occupational pension, the employer is obliged by the scheme trust deed to contribute to the pension fund.

In the case of personal pension funds, there is no such obligation on employers.

It is interesting to note, however, that a number of employers will now voluntarily agree to contribute to personal pension plans of employees.Employer-based pensions usually provide death-in-service benefits, such as a lump sum payable to the dependents of an employee who dies in their employment.

Death-in-service benefits are generally payable out of discretionary funds and the employee may nominate his or her spouse and/or children as the beneficiaries.

This means that the money payable does not form part of the deceased's estate for inheritance tax purposes.In addition, in the case of ill health, employees in occupational pensions may be entitled to enhancement.

This usually entails paying the sick person the full pension benefits he or she would have received on attaining retirement from the date of the sickness and inability to continue working.This is not normally available to those in a personal pension plan.

In this case, the client may have to incur the extra expense of permanent health insurance for a considerable part of his or her life.

The main imposition of such a policy is that if the payee remains in rude health, he or she will have paid premiums (which may not be inconsiderable) without any tangible financial benefit but merely for peace of mind.A final salary pension scheme provides the employee with a guaranteed level of benefit commensurate with his or her salary.

On the other hand, the benefits under personal pension schemes and money-purchase occupational schemes depend entirely on how well the investments fair on the Stock Exchange.

The risk is obvious - the fund may do well or badly, dependent on stock market fluctuations.When a member of a final salary scheme wishes to change jobs, the transfer value procedures are necessarily complicated and may result in some loss of benefits.

With personal pensions and money purchase schemes, job transfers do not alter the personal pension arrangements.Under occupational pension schemes, the employee may be in receipt of enhanced benefit provision on early retirement through ill-health or even redundancy.As regards commission, administration costs of occupational pension schemes are usually borne by the employer.It may be beneficial to refer to some of the most significant issues which should be raised about pensions.

It is prudent, before proffering any advice, to elicit the following information:1.

If the pension is an employer-related one, whether it is final salary or money purchase.2.

Details of how to calculate the annual pension and/or lump sum payable on retirement and approximately how much one may expect to receive.3.

Discover what family-oriented benefits are payable.4.

Discover whether, if the pension is an occupational one, there is the likelihood of enhancement either voluntarily or in the case of ill health.If the pension is a personal one, it is wise to ask: what the value of the pension will be on retirement, eg the likely size of the trust fund, and the prospective pension/lump sum that it will represent; the amount of administrative expenses payable; whether the pension is inflation proofed; the likely benefits available for the member's spouse/family.For those with inadequate national insurance records, it may be worth considering whether to pay additional national insur ance contributions to ensure receipt of a full or larger state pension.Those employees in occupational pensions - particularly final salary - would be unwise to leave their occupational scheme unless compelled to do so by, for example, going self-employed or into partnership.Provided a reasonable service record with the employer is feasible, final salary occupational pensions (depending, of course, on the amount of salary received) are generally beneficial.Occupational pensions often require topping up with additional voluntary contributions (AVC) or free-standing voluntary contributions (FSAVCs).

The former, often called in-scheme AVCs, allow members to pay contributions and consequently increase benefits payable on retirement.Pension schemes must, since 1988, offer 'in-scheme' AVC facilities.

The contributions are paid direct to the trustees of the occupational scheme.

Usually pension schemes allow AVCs payable directly into the funds of the pension scheme, possibly to purchase additional years.FSAVCs are separate from the occupational scheme.

The employer will not contribute to FSAVCs and benefits will be provided on a money purchase basis additional to those in the occupational scheme.

They, like AVCs, are usually provided by insurance companies or banks.

The additional contributions under an AVC, as noted, are paid to the trustees of the scheme whereas, in the case of an FSAVC payment, it is direct to the insurance company or bank.Personal pensions are the only form of provision available to the self-employed.Pension law is complex and, before deciding on a course of action, attention must be paid to the individual's personal needs and circumstances.

Pensions should not be considered in isolation but as part of a family's general financial strategy.

Pension benefits should be considered alongside those under assurance policies, savings and mortgages to develop a coherent financial strategy.