I have head the words Defined Benefit and Defined contribution what is the difference?
Under a Defined Benefit (DB) scheme, the benefits are defined, thus the final pension a contribution can receive is pegged. However under a Defined Contribution (DC) the contributions are defined hence the final pension is a function of how well the contribution paid by both the employer and employee have been invested by the PFA. Under the DC the scheme is immediately funded, thus payments are made as at when due.
