Definition of Hybrid scheme

A hybrid scheme is a characterized benefit scheme, which includes components of cash buy benefits design.

In a characterized benefit scheme, your annuity scheme will utilize an equation, to calculate your annuity benefits utilizing 4 key components. The equation (and the definitions for each piece of it) will be set out in the Scheme Rules.

Brief Explanation of  Hybrid scheme

Schemes offering blended advantages can be mind complex. They incorporate a combination of DB and DC benefits. Cases of hybrid schemes include:

• isolate DB and DC segments under one trust.
• DB scheme with a DC support, eg a plan that will pay a part the better of their DB or DC advantage.
• DC scheme with a contracted out component on a DB premise.
• DB scheme with a DC top-up.