Income calculated under scheme rules
A defined benefit pension normally provides retirement income based on pay and scheme membership. MoneyHelper explains final salary and career average arrangements: their calculation methods differ. Your scheme paperwork or administrator should confirm which applies and how the benefits are described.
Keep the conditions with the amount
When recording a quoted income, keep its payment period, relevant retirement date and the statement date beside it. Preserve any explanation of conditions rather than stripping the figure out of context. If you do not understand which pay or service the scheme has used, ask it to explain the calculation.
For example, a fictional letter might describe income per year at a scheme date. File that as an income record, not a cash pot. A quotation for a different retirement date may answer a different question. Keep the letters separately with their labels rather than assuming one replaces the other in every respect.
A transfer quotation is a separate document
If paperwork includes a transfer quotation, do not use it to relabel the promised income as a DC pot. MoneyHelper warns that moving from defined benefit to defined contribution can leave someone worse off and that a completed transfer cannot be reversed. Understanding the paperwork does not establish whether a transfer is appropriate.
This guide does not recommend a transfer or value your benefits. Keep the quotation and its conditions with the original scheme information, and use appropriate current guidance or regulated advice for a decision. Do not interpret a record-keeping example as a suitability assessment.
Ask for confirmation before changing the record
Leave the type unknown if a letter does not make it clear or includes multiple elements. Ask the administrator whether the reference identifies DB benefits, DC benefits or both. A provider name alone cannot confirm the benefit type for your account.
The Passport totals only recorded DC pot values. It does not convert scheme income into a pot, store a complete DB benefit schedule or confirm membership independently. Keep the original benefits paperwork in your own records and use the linked overview to maintain clear distinctions.
Sources & review
- MoneyHelper: Defined benefit pension schemesChecked 2026-10-04
Next scheduled review: 2027-04-04. Provider details can change sooner. Use the official website for the current contact route.
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