Glossary - Defined benefit pensions
Description
Defined benefit pensions are workplace pension schemes that provide a guaranteed income in retirement, usually based on salary and length of service rather than investment performance. The income is paid for life and is typically linked to inflation, with the employer bearing the investment and longevity risk.
Alternate Names
- Final salary scheme
- Accrual rate
- Scheme trustees
- Guaranteed income
- Career average scheme
- Pensionable salary
