defined contribution scheme
defined contribution scheme (DC scheme) Also known as a money purchase scheme. A pension scheme where the benefits payable to an individual member are calculated by reference to contributions paid in to the scheme in respect of that member increased by the investment return achieved. At retirement the member's pension is secured by purchasing an annuity. The pension is therefore dependant on the level of contributions, investment return and the prevailing annuity rate at retirement.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • defined benefit scheme — (DB scheme): An occupational pension scheme or other retirement benefit scheme which promises the member a defined level of benefit on death or retirement. Employer s contributions have then to be determined from time to time so as to cover the… …   Law dictionary

  • defined-benefit scheme — (DB scheme): An occupational pension scheme or other retirement benefit scheme which promises the member a defined level of benefit on death or retirement. Employer s contributions have then to be determined from time to time so as to cover the… …   Law dictionary

  • defined contribution — UK US adjective [before noun] HR ► used to describe a pension arrangement in which the amount paid into the pension plan is fixed but the value of the pension that is received may change, according to how the money in the plan was invested: »a… …   Financial and business terms

  • defined-contribution — UK US adjective [before noun] HR ► used to describe a pension arrangement in which the amount paid into the pension plan is fixed but the value of the pension that is received may change, according to how the money in the plan was invested: »a… …   Financial and business terms

  • defined-contribution pension scheme — DC scheme A pension scheme in which the benefits are based on the value of the contributions paid in by each member. The rate of contribution is normally specified; the amount of pension an individual will receive will depend on the size of the… …   Accounting dictionary

  • defined-contribution pension scheme — DC scheme A pension scheme in which the benefits are based on the value of the contributions paid in by each member. The rate of contribution is normally specified; the amount of pension an individual will receive will depend on the size of the… …   Big dictionary of business and management

  • contribution notice — A financial obligation requiring the payment of a sum of money to a defined benefit scheme. The liability is imposed by the Pensions Regulator on one or more employers or other persons associated or connected with them if, on or after 27 April… …   Law dictionary

  • Defined benefit pension plan — For the defined contribution pension plan, see Defined Contribution Pension Plan. In economics, a defined benefit pension plan is a major type of pension plan in which an employer promises a specified monthly benefit on retirement that is… …   Wikipedia

  • defined-benefit pension scheme — DB scheme An occupational pension scheme in which the rules specify the benefits to be received on retirement and the scheme is funded accordingly. The benefits are normally calculated on a formula incorporating years of service and salary levels …   Accounting dictionary

  • defined-benefit pension scheme — DB scheme An occupational pension scheme in which the rules specify the benefits to be received on retirement and the scheme is funded accordingly. The benefits are normally calculated on a formula incorporating years of service and salary levels …   Big dictionary of business and management

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