Defined benefit pension scheme

(DB).

A pension scheme that provides benefits based on how much a member is paid and the number of years they have been in the scheme.

Also known as pay related schemes (one example of which is a final salary scheme).

Such schemes may be funded or unfunded.

Relevant accounting standards include Section 28 of FRS 102.

See also

• Accrual
• Accrual rate
• Active member
• Career average pension scheme
• Debt on the employer
• Defined contribution pension scheme
• Final salary pension scheme
• FRS 102
• Funded scheme
• Funding
• Hybrid pension scheme
• Insured pension scheme
• Lifetime allowance
• Occupational pension scheme
• Pension liabilities
• Pensionable salary
• Pensionable service
• Unfunded scheme