money purchase scheme
Also known as a defined contribution scheme. A pension scheme where the benefits payable to an individual member are calculated by reference to contributions paid in to the scheme in respect of that member increased by the investment return achieved. At retirement the member's pension is secured by purchasing an annuity. The pension is therefore dependant on the level of contributions, investment return and the prevailing annuity rate at retirement.
Related links
multi-employer scheme (multi-employer pension schemes)

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • money purchase scheme — UK US noun [countable] [singular money purchase scheme plural money purchase schemes] business a pension plan in which a person’s payments are used to invest in an annuity . The amount of pension that the person receives depends on the total… …   Useful english dictionary

  • money-purchase scheme — Also known as a defined contribution scheme. A pension scheme where the benefits payable to an individual member are calculated by reference to contributions paid in to the scheme in respect of that member increased by the investment return… …   Law dictionary

  • money purchase scheme — UK / US noun [countable] Word forms money purchase scheme : singular money purchase scheme plural money purchase schemes business a pension plan in which a person s payments are used to invest in an annuity. The amount of pension that the person… …   English dictionary

  • money purchase scheme — /ˌmʌni pɜ:tʃɪs ski:m/ noun any pension scheme to which members make contributions which determine the final pension (as opposed to a ‘final salary scheme’ where the pension is a percentage of the final salary earned) …   Dictionary of banking and finance

  • contracted-out money purchase scheme — (COMP scheme) A money purchase scheme that has contracted out of the state second pension (S2P). To qualify as a COMP scheme, the scheme must satisfy certain criteria set out in the Pension Schemes Act 1993. In particular, the empl …   Law dictionary

  • Money Purchase — A Money Purchase scheme is a type of pension arrangement in the United Kingdom. It can either be sponsored by an employer or an individual arrangement with an insurance company. Basically, with type of arrangement a sum of money is accrued which… …   Wikipedia

  • Money purchase — A Money Purchase scheme is a type of pension arrangement in the United Kingdom. It can either be sponsored by an employer (such as a SSAS) or an individual arrangement (such as a SIPP or Personal pension, sometimes with an insurance company).… …   Wikipedia

  • money-purchase — A money purchase occupational pension scheme is where contributions are based on fixed cash amounts or salary percentages. These sums plus investment income and capital gains together provide retirement benefits based on the performance of the… …   Law dictionary

  • money-purchase — UK US adjective [before noun] FINANCE ► used to describe a type of pension in the UK in which the money you put in while you are working is invested, and the amount you receive when you stop working depends on how well the investments perform: »I …   Financial and business terms

  • money-purchase pension scheme — A defined contribution pension scheme as opposed to a defined benefit pension scheme …   Big dictionary of business and management

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