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24th November 2017
:: Scheme Member | Types of Pension Scheme | What is a defined benefit scheme with a money purchase underpin?

What is a defined benefit scheme with a money purchase underpin?
 
We take a detailed look at a variation of a defined benefit scheme. Even though there is an element of the pension benefit which is money purchase (i.e. an ‘underpin’), because a defined benefit scheme provides a ‘promise’ to the emerging pension, schemes with a ‘money purchase underpin’ are still regulated as defined benefit schemes.
 
A defined benefit scheme with a money purchase underpin provides you with two alternative pension options from the same pension scheme. You will get the better of:
  • a ‘defined benefit’ element of the pension scheme
  • a ‘money purchase’ 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 with a money purchase underpin? - for Active Members of Defined Benefit Schemes
What is a defined benefit scheme with a money purchase underpin? - for Preserved Members of Defined Benefit Schemes
What is a defined benefit scheme with a money purchase underpin? - 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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