Skip to main content

TPT Retirement Solutions
FAQs

If I switch from Defined Benefit (DB) to Defined Contribution (DC), what happens to the benefits that I have already in the scheme?

CATEGORIES:

  • Members
  • General

If your employer chooses to move you from a DB scheme to a DC scheme:

If you were previously in the Defined Benefit scheme at any time before you move to the Defined Contribution scheme, you should retain the link to your salary. The method for calculating your final salary pension is based on:

  • Service in the scheme (whilst you were a Defined Benefit member) x Accrual rate x Final Pensionable Earnings.
  • If you are moved to the Defined Contribution section, you would not build up any further service in the Defined Benefits scheme at the date of change, but you will retain the link to your salary. Your benefits would be calculated taking into account your salary at the date of leaving, rather than the date you transferred to the DC benefit structure.
  • Any pension benefits already built up within the Career Average (CARE) section will continue to increase annually in line with a link to inflation. These benefits are not linked to your Final Pensionable Earnings.

If you choose to move from a DB to a DC scheme:

You will not build up any further service in the Defined Benefit scheme from the day you move to the Defined Contribution section and your final pensionable earnings will not take into account any salary changes after you move. 

Any pension benefits already built up within the Career Average (CARE) section will continue to increase annually in line with a link to inflation. These benefits are not linked to your Final Pensionable Earnings.