NHS Pensions explained
What types of pension scheme are there?
There are two main types of pension schemes:-
- Defined contribution
- Defined benefit
All personal pensions and most occupational schemes are defined contribution or “money purchase” schemes. With a money purchase scheme the money invested is used to purchase units in a fund and the whole value depends on the performance of the fund.
Defined benefit schemes are only occupational schemes which are offered by your employer. The benefits on retirement are based on your salary and length of service.
For General Practitioners this varies slightly as the final benefit is based on superannuable income earned during service.