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Defined benefit pension plan |
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Defined benefit pension planA pension plan in which an employee's pension benefit is related to number of years service and final salary with each employer.Similar MatchesSimplified defined contribution schemeSimplified defined contribution schemeSee: 'defined contribution pension plan' Defined contribution planDefined contribution planA pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan Defined contribution pension planDefined contribution pension planA pension plan in which benefits are dependent on contributions to and the growth of the pension fund. Money purchase scheme (defined contributions scheme)Money purchase scheme (defined contributions scheme)A pension scheme in which the benefits will be dependent on contributions to, and growth of, the fund and the fund manager's costs. Final salary scheme (defined benefit scheme)Final salary scheme (defined benefit scheme)A pension scheme in which an employee's pension is based on number of years of service and final salary with each employer. In this type of scheme employees are typically provided with 1/60 of final salary for each year of service up to a maximum of 40/60 that is, two thirds of final salary. At retirement a tax free lump sum may be taken at the expense of a reduced pension. Further SuggestionsDefined asset fundDefined benefit plan |
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