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Q: What is the difference between a defined benefit scheme and a defined contribution scheme?

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A: A defined benefit scheme means that before joining the scheme, you already know what you could get after contributing. This is based on a formula which considers various variables, such as your age, number of years or contributing to the scheme and your average best salary.  

With a defined contribution scheme, you are expected to contribute a particular amount (or percentage) to a scheme and what you receive is your contribution + returns. The 3-tier pension scheme operates a combination of both types.