Salary-related scheme | Practical Law

Salary-related scheme | Practical Law

Salary-related scheme

Salary-related scheme

Practical Law UK Glossary 9-107-7188 (Approx. 4 pages)

Glossary

Salary-related scheme

A pension scheme providing benefits calculated by reference to a member’s salary at or shortly before the date of retirement, death or leaving service. The employer is usually required to make contributions to a salary-related scheme to ensure that the scheme has sufficient assets to meet the benefit liabilities. A final salary scheme is a form of a salary-related scheme and most defined benefit schemes are salary-related schemes.