Defined benefit pension scheme (DB)
Defined benefit pensions are often described as “final salary” or “gold-plated” pensions.
Members of DB schemes are typically paid a pension based on their earnings history, tenure of service and age.
DB schemes are less common than they used to be. And there are worries that many of these expensive schemes don’t have the funds to meet their promises (or “liabilities”).
Most are no longer accepting new members, and often even existing members no longer receive future defined benefits.