Final salary scheme (defined benefit scheme) - A pension scheme in which an employee"s pension is based on number of years of service and final salary with each employer. In this type of scheme employees are typically provided with 1/60 of final salary for each year of service up to a maximum of 40/60 that is, two thirds of final salary. At retirement a tax free lump sum may be taken at the expense of a reduced pension.
Final salary scheme (defined benefit scheme) : a pension scheme in which an employee"s pension is based on number of years of service and final salary with each employer. in this type of scheme employees are typically provided with 1/60 of final salary for each year of service up to a maximum of 40/60 that is, two thirds of final salary. at retirement a tax free lump sum may be taken at the expense of a reduced pension.
Final salary scheme (defined benefit scheme)