What is a collective defined contribution pension scheme?

A CDC scheme is a pension scheme where the employer pays a fixed rate of contributions, similar to a Defined Contribution scheme. In a CDC, the employees receive pensions with variable increases through cross funding within the scheme between members of the scheme.

What type of pension scheme is GPP?

Group personal pensions (GPPs) are a type of defined contribution pension which some employers offer to their workers. As with other types of defined contribution scheme, members in a GPP build up a personal pension pot, which they then take money from when they retire.

When was the new pension scheme introduced?

A New Pension Scheme (Contribution based Pension Scheme) now called National Pension System (NPS), was introduced for Central Government employees vide Ministry of Finance (Department of Economic Affairs) Notification No. 5/7/2003- ECB & PR dated 22nd December, 2003.

What is defined contribution plans in India?

A defined contribution calculates pension based on the amount you contribute and returns the fund earns. Retirement products such as EPF and NPS are defined contribution products. Under NPS, you invest till the age of 60 years. You can begin with a minimum annual contribution of 6,000.

What is the difference between defined benefit and defined contribution pension plans?

A defined benefit plan (APERS) specifies exactly how much retirement income employees will get once they retire. A defined contribution plan only specifies what each party – the employer and employee – contributes to an employee’s retirement account.

What is the difference between a DB and DC pension?

A defined contribution (DC) pension scheme is based on how much has been contributed to your pension pot and the growth of that money over time. It may be set up by you or an employer. A defined benefit (DB) plan is always set up by an employer and offers you a set benefit each year after you retire.

Who regulates GPP?

For instance, GPPs must be governed by independent governance committees (IGCs) (see Group personal pensions—principal legal features below) and restrictions apply in relation to member-borne charges.

Is a GPP an occupational pension scheme?

Occupational pensions are set up by employers to provide retirement income for their workers, while a group personal pension (or stakeholder pension) is a scheme chosen by the employer with an individual contract in place between the pension provider and the member of staff.