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14th December 2017
:: Scheme Member | Types of Pension Scheme | What is a money purchase scheme with a defined benefit underpin?

What is a money purchase scheme with a defined benefit underpin?
 
This Factsheet takes a detailed look at a variation of money purchase schemes – which provide some measure of ‘promise’ to the emerging pension. Because of this ‘promise’, these schemes are regulated as defined benefit schemes.
 
In its simplest format, a money purchase scheme with a defined benefit underpin provides you with two alternative pension options from the same pension scheme. Whenever you draw your pension benefits, you will get the better of:
  • a ‘money purchase ’ element of the pension scheme
  • a ‘defined benefit’ element of the pension scheme
You will not receive two pension benefits: just the better pension from one of the two alternatives.
 
To find out more, choose one of our free Factsheets on the right to match your category of membership.
 
 
Not sure which category of member you are? See our definitions:
 
 
 
 
 
See our Glossary for definitions of phrases in our Factsheets
       
 
 
 
 
 
  Defined Benefit scheme members
 
What is a defined benefit scheme? - for Active Members of Defined Benefit Schemes
What is a defined benefit scheme? - for Preserved Members of Defined Benefit Schemes
What is a defined benefit scheme? - for Pensioner Members of Defined Benefit Schemes
       
 
  Money Purchase scheme members
 
This Factsheet is not applicable to members of Money Purchase schemes
This Factsheet is not applicable to members of Money Purchase schemes
 
     

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