Henny Penny
Registered User
- Messages
- 559
Are you sure? DB schemes have to get annual actuarial sign-off of their funding levels - they can't merrily contribute 10% for 40 years, get to the employee's retirement age and say, oops, not enough money but sure no problem, we'll lash in the extra 500K needed now... The employer is told each year how much they need to contribute to keep on track to whatever DB they have promised - a defined 10% contribution makes no sense in the contect of a defined benefit scheme.That's not how defined benefit works. The reason they are good is that no matter what is contributed, when you retire you will get x amount of pension. If there is a shortfall in the pension fund employer has to pay up.
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