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DEFINED CONTRIBUTION SCHEME

Also known as a Money Purchase Scheme. A pension scheme where the amount of a member’s retirement benefit depends on the amount of contributions paid into the scheme by or for the member. Either the employer or the policyholder decides the rate of contributions.

DEFINED CONTRIBUTION SCHEME

Also known as a money purchase scheme, this is a pension plan run by an employer or a private provider such as an insurer whereby your savings are invested and you decide how to use the money on retirement.

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