| A pension scheme in which an employee's pension is based on the number of years of service and final salary with each employer. In this type of scheme employees are typically provided with 1/60 of final salary for each year of service up to a maximum of 40/60 that is, two thirds of final salary. At retirement a tax-free lump sum may be taken at the expense of a reduced pension. Sponsored by the employer, its popularity as a form of remuneration has waned as liabilities have increased due to such factors as increased longevity.
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