Money Purchase Pension Plan. A money purchase plan is a type of retirement plan in which an employer must add a certain percentage of an employee's earnings every year. Alternate names: money purchase pension, money purchase pension plan.
Money-purchase pension plan is a plan with defined fixed contributions.
A pension plan by which employers and employees make contributions according to a percentage of annual profit, in line with the terms stated in the plan.
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Understanding Money Purchase Plans
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With money purchase pensions, also known as defined contribution schemes, the money you put into your pension plan is invested and what you have at retirement depends on how those investments have performed. Our service combines all of your old pensions into one easy to manage online plan. Your pension contributions attract tax relief (up to annual limits).