Defined benefit

Definition: 

This is another name for a salary-related pension. A defined benefit- or salary-related pension has rules that determine how much pension you will be paid, and will normally depend on your salary and how long you contributed to the scheme. In other words, you are made a pensions promise, and the size of your pension will not depend on the ups and down of the stock market. This contrasts with a defined contribution or money purchase scheme.

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