Increases in minimum contributions to the UK's auto-enrolment pension schemes, for employees receiving gross pay of between 6,032 and 46,350 a year, are being phased in as shown in Table 1.

Date Employer minimum contribution Staff contribution Total minimum contribution

Until 5 April 2018 1% 1% 2%

6 April 2018 to 5 April 2019 2% 3% 5%

April 2019 onwards 3% 5% 8%

• a.Auto-enrolment pensions (in which most employees are automatically made members of a workplace pension scheme) were introduced as part of a strategy to boost pension saving, which the UK government regarded as too low. Identify and briefly explain one feature of the scheme that is designed to increase the scale of saving into pensions, compared to the voluntary-enrolment schemes that existed before.
• b.Jo has been auto-enrolled into her employer's defined contribution occupational pension scheme. Briefly explain what is meant by a 'defined contribution' pension scheme, and how it differs from a 'defined benefit' scheme.