How the DB Plan works

In a DB plan, members are promised a particular level of benefit at retirement, based on their length of service and their salary when they retire.

On 31st December 2011 the DB plan closed to new members and also to future accrual of benefits for existing members. Benefits already accrued under the DB plan are preserved until retirement.

The DB plan was replaced from 1st January 2012 with a Defined Contribution (DC) plan.

The Pension Trustee is responsible for ensuring that the pension fund is sufficient to provide the promised retirement benefits to members. If the fund is in deficit, then the Trustee will require the participating employers to make additional contributions to eliminate the deficit.

Consequently, in a DB plan, the employer carries the risk that the promised pension costs more to provide than was originally anticipated.

If you have at any time between 2 September 2005 and 31 December 2011, employed a member of the DB plan, then it is essential that you understand the contents of the Defined Benefit section of this website.

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