Money purchase scheme | Practical Law

Money purchase scheme | Practical Law

Money purchase scheme

Money purchase scheme

Practical Law UK Glossary 0-107-6857 (Approx. 3 pages)

Glossary

Money purchase scheme

Also known as a defined contribution (DC) scheme. A pension scheme where the benefits payable to an individual member are calculated by reference to contributions paid into the scheme in respect of that member, increased by the investment return achieved. At retirement the member will buy an annuity, draw a scheme pension or opt for income withdrawal. A technical definition of a "money purchase scheme" is contained in section 181(1) of the Pension Schemes Act 1993.