Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Defined benefit scheme definition

What does Defined benefit scheme mean? A defined benefit scheme is an occupational pension that promises a set level of retirement income determined by a formula, usually an accrual rate applied to pensionable service and pensionable earnings, rather than by investment performance. In UK and Irish pensions legislation the term distinguishes salary-related benefits from money purchase/defined contribution benefits. Typical features include final salary or career average revalued earnings (CARE) designs; statutory revaluation of deferred benefits and, where applicable, indexation in payment; employer responsibility for funding, investment and longevity risk; and trustee obligations to operate a statutory scheme-funding regime supported by periodic actuarial valuations and recovery plans. Across...

Closed DB occupational pension schemes: running, funding and investment strategy, covenant and risk management, auto-enrolment, governance and GMP equalisation under the 2024 DB funding reforms

Published by a LexisNexis Pensions expert

Practice notes

This Practice Note

Provides practical guidance for trustees, as well as sponsoring employers, on operating a defined benefit (DB) pension scheme that has been closed to future accrual, ie with no ‘active’ members accruing pensionable service in the scheme. It does not address the act of closing itself, nor the factors considered in reaching a decision to run a closed scheme rather than proceed to wind-up. It likewise excludes the steps involved in winding up a scheme or managing a scheme in preparation for entry to the Pension Protection Fund (PPF).

For details on these topics, refer to the following Practice Notes:

Closing a pension scheme to future accrual—trustee considerations
Closing a pension scheme to future accrual—employer considerations
Trustee decisions and the Pension Protection Fund
Winding up a defined benefit (DB) occupational pension scheme

Often, the initial move when closing is (though not always) to shut to new members while allowing existing members to continue accruing benefits. Although not expressly covered by this Practice Note, many of the themes outlined below would, to a lesser extent, still be relevant in this ‘intermediate’ position before the decision is reached regarding closure, continued accrual for incumbents, or eventual winding up of the...

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Tyron Potts

Barnett Waddingham LLP

Tyron Potts graduated from the University of Warwick with a first-class honours degree in mathematics, operations research, statistics and economics, and qualified as a Fellow of the Institute & Faculty of Actuaries in 2007. He joined Barnett Waddingham in February 2008, following the firm's acquisition of Garvins. In his role as chair of the firm's Pensions Research Group, Tyron is responsible for producing many of Barnett Waddingham's information bulletins and our monthly and quarterly Current Pensions Issues publications. Tyron and his team ensure that Barnett Waddingham's consultants and clients are kept informed about changes to pensions legislation and guidance, and that our views are represented in industry-wide consultations. Tyron is also a member of the Association of Consulting Actuaries' (ACA) Pension Schemes Committee. Tyron regularly speaks on technical issues at seminars, and he chairs training sessions for pension scheme trustees in our...

Web page updated on 28/05/2026

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