A Guide to Defined Benefit Pension Transfers
This Guide to Defined Benefit (DB) Pension Transfers is intended for someone who is a member of one or more Defined Benefit Pension schemes and is considering a transfer from their scheme to another arrangement. This guide should provide some useful background information to help decide if the transfer is suitable for them.
This Guide to Defined Benefit (DB) Pension Transfers is intended for someone who is a member of one or more Defined Benefit Pension schemes and is considering a transfer from their scheme to another arrangement. This guide should provide some useful background information to help decide if the transfer is suitable for them.
What is a Defined Benefit Pension scheme?
A defined benefit pension is one type of workplace pension scheme.
It is a type of pension plan in which an employer promises a specified pension payment, lump sum (or
a combination of both) on retirement. The benefits payable are predetermined using a number of factors, typically including: an employee’s earnings history, tenure of service and age, as opposed to relying directly on individual returns. This type of pension scheme is also commonly known as a ‘final salary’ scheme. A typical defined benefit pension scheme usually continues to pay a pension to your spouse, civil partner or dependents (for a restricted period) when you die.
