Defined Benefit (DB)
This is a type of pension scheme and examples include 'final salary' or 'career average related earnings'. The amount you get at retirement is based on a formula which takes into account a number of things, including your earnings and how long you have been a member of the pension scheme. In most schemes, when you retire you can take some of your pension as a tax-free cash lump sum. The rest you get as a regular income, on which you might pay tax.