D
didster
Member
I was wondering if anyone had experience with a DC plan that pays pensions directly.
I think that on retirement the benefit becomes a DB benefit, as the scheme effectively guarantees a fixed rate of pension.
Does the plan therefore need to be treated as a DB plan, eg when it comes to valuations, risks, etc?
Or are there mechanisms that remove the DB risks from the employer and onto the membership (pensioner or otherwise)
I think that on retirement the benefit becomes a DB benefit, as the scheme effectively guarantees a fixed rate of pension.
Does the plan therefore need to be treated as a DB plan, eg when it comes to valuations, risks, etc?
Or are there mechanisms that remove the DB risks from the employer and onto the membership (pensioner or otherwise)