Sony’s Defined Benefit (DB) Section closed to new members in April 1999 and to future accrual in March 2011. In this type of pension scheme, the pension you get from the Scheme is known before you retire because it is worked out using a set formula.
The pension you receive is based on:
- The number of years of active membership of the Scheme, and
- Your pensionable salary as defined by the Trust Deed and Rules on becoming a deferred member of the Scheme or retiring, whichever came first.
If the Scheme does not have enough money to pay all the benefits that have been promised to members, the Company must put more money into the Scheme. In this type of pension plan the Company carries the risk in the event the Scheme’s investments perform poorly.