A pension scheme providing pension benefit by reference to the scheme member's salary at or near retirement.
Most occupational pension schemes still calculate the pension as a percentage of final salary (maximum 40/60ths), also known as a defined benefit scheme, although are changing more and more to money purchase schemes.
The calculation of your pension on retirement is based on a fraction of your pensionable earnings for each year you've been a member of the pension scheme. The most common fraction used is 1/6th and if you had been a member of the scheme from the age of 25 to 65 ,this would give you the maximum pension of 40/60 or 2/3 of your final salary.The fewer years that you are in the scheme means a smaller pension. It is usual for the pension to get regular increases and a provision is usually made for a pension for your spouse if you die first, or if you die before the retirement payment of the one-off payment.
A pension scheme that provides a pension and a lump sum benefit calculated as a proportion of a member's pay in their last year of membership depending on the length of membership in the scheme.
a type of pension scheme where the fund is calculated based upon the policy holder's final salary. The number of years in employment are also taken into consideration.
An employer pension scheme, the benefits of which are linked to length of company service and the final salary of the member.
A company pension scheme that is worked out according to length of service and salary on retirement. They are highly valued by many people but increasingly rare.
Another term for a defined benefit plan, in which benefits are based on a percentage of the member's final pensionable salary at retirement for each year of pensionable service in the pension plan.
Pension scheme whereby the pension is calculated as a percentage of the final salary.
Pension scheme where the benefit is based on the member's pensionable earnings for a period ending at or before normal retirement date or leaving service.
A type of Defined benefit scheme where the pension payable is based on the length of time that an employee has been a member of the scheme and their earnings in the final years prior to retirement.
A Defined Benefit Scheme whose benefits are calculated by reference to salary at, or close to, retirement.
A defined benefit scheme where the benefit is calculated by reference to the final pensionable earnings of the member, usually also based on pensionable service.
A pension scheme in which an employee's pension is based on number of years of service and final salary.
This is a pension scheme where the amount of benefit is based on final salary.
A Defined Benefit scheme that gives individuals a pension based on the number of years of pensionable service, the accrual rate and final earnings as defined by the scheme.
A scheme that provides a pension to you, and benefits to your family and/or beneficiaries on your death, based on the time you have been in the scheme and your retiring pay.
A particular form of defined benefit pension scheme (see under that heading). Benefit is calculated based upon the final salary of the member and years of service.
The Rolls-Royce of company pension schemes. The size of pension on retirement is calculated according to a formula that incorporates the number of years you've worked for the company and the level of your 'pensionable earnings'. The maximum pension is two-thirds of your final salary. They usually come with a widow's pension and annual increases in line with inflation. But in these days when jobs for life are increasingly rare, expensive final salary schemes are being replaced by riskier money purchase schemes.
A pension scheme under which the rate of pension is based on the Final pensionable salary (q.v.) before retirement.
This is the most common type of defined benefit scheme . It means that the pension paid to the member is based on how much they are earning when they retire.- This amount could be an average over their last few years of work.
An occupational pension scheme where the final pension an employee receives is linked to the size of their final salary. They are also referred to as Defined Benefits schemes.
A particular form of pension scheme in which the amount of pension you will get is calculated based on your final salary, and the number of years you have worked for the company.
