Defined Contribution Pension Schemes

A Defined Contribution pension scheme means that the ultimate value of your pension fund at retirement age is dependent on the amount invested and the investment performance achieved over the term.

In April 2012 there were more than 16,000 group DC schemes in operation, covering more than 190,000 workers.  In recent years there has been a shift from Defined Benefit Schemes to Defined Contribution plans.

A Defined Contribution Plan is one that an employer sets up in order to provide retirement benefits for employees.  Each member of the scheme has an individual policy.  The employee will generally have an individual choice regarding the fund they invest in.  The pension contribution  is normally deducted directly from your salary and tax relief is available at source.

QAFAQ for Employers  Defined Contribution Scheme [

FAQ for Employees  Defined Contribution Scheme [Read More] 

A critical part of the administration of a DC scheme is to ensure adequate member communication and information.  The selection of the DC provider may in the past have been based on brand, price and convenience.  In some instances, a single provider with the ability to take care of everything from administration through handling member queries and investment performance may have been chosen. However, conflicts of interest may arise which may result in high costs and under performance.


For Pension Advice: Contact Future