May 17, 2021
What is a Defined Benefit Pension Plan?
A Final Salary pension scheme is an occupational pension scheme that offers clients particular guaranteed and safeguarded benefits linked to an accrual rate. Often commonly referred to as a UK Defined Benefit pension schemes or a DB pension plan.
For example, it may be ‘index-linked' meaning your pension benefits are guaranteed to grow to keep pace with rising prices. As such, people usually refer to Defined Benefit schemes as being ‘gold-plated’ because they are a valuable asset.
UK DB Schemes are different from the Defined Contribution plans, see:
https://www.cjfinance.co.uk/services/uk-pension-transfers/defined-contribution-pension-transfer/
