A defined benefit pension, also known as a "final salary" pension, is a type of workplace pension that bases your retirement income on:

1. how long you have worked for your employer and contributed to the defined benefit

scheme

  2. your salary while working, sometimes your final salary, or sometimes an average of

your salary over your career.

 

The circumstances under which benefits are taken from the scheme (retirement, early payment, early leaver, ill-health, death etc.) the accrual rate: the proportion of your salary you will get as an annual retirement. Your employer is necessary to ensure that the scheme does have enough funds to pay you when you retire. If your company runs into financial difficulties and is unable to meet its pension obligations, the Pension Protection Fund (PPF) can cover your pension income, though you may receive less than what your employer promised.

 

Defined benefit pensions are classified into two types:

 a final salary pension is one in which your post-retirement benefit is based on your
salary at the time of retirement.
 a career average pension is one in which the post-retirement benefit is based on the
average of your salary with that employer over your career.

The benefits defined benefit pension offers are as follows:

•  guaranteed amount of pension income for life

•  protection against inflation

•  protected retirement age,



pension for your Spouse/dependent children if you die the option to take a cash lump sum on retirement. Many people were wrongly advised to transfer their defined benefit pension giving up such valuable benefits. Their pension was invested into a defined contribution which is a common workplace retirement plan in which an employee contributes money, and the employer typically makes a matching contribution. Following the financial advisor’s recommendation hundreds of thousands of people advise to transfer their pension and withdrew the funds at the earliest opportunity.
The FCA, when assessing the suitability of transferring from a defined benefit scheme, start with the premise that it is not suitable for the people to transfer. This guidance has clearly not been adhered to by the financial advisors and they have recommended transfers for no reason.

If you have been advised to transfer out of any of these pension pots listed below, you may be entitled
to claim.

 Armed Forces Pensions
 BAE Systems Pensions
 Barclays Pension Scheme
 British Airways Pension
 British Steel Pension Scheme

 BP Pension Scheme
 BT Pension Scheme
 Dolphin Pension Trust Claims
 Electricity Supply Pension Scheme
 Greater Manchester Pension Fund
 Jaguar Land Rover Pension
 Local Authority Pension Scheme
 Marks & Spencers Pensions
 Merseyside Pension Fund
 Mineworkers Pension Scheme
 Nestle Pension Fund
 NHS Pension Transfers
 Police Pension Schemes
 Railway Pensions
 Royal Mail / Post Office Pension Scheme
 Strathclyde Pension Fund
 Teacher’s Pension
 Tobacco Company Pension
 Transport For London
 Universities Superannuation Scheme
 West Midlands Metropolitan Pension
 West Yorkshire Pension Fund