This is a type of pension scheme also known as ‘money purchase’ scheme. It is built up through your own contributions, those of your employer and tax relief from the government. The amount received when benefits are taken usually depends on how much has been paid in, the charges deducted and how well the investment has done.
There are two main types of defined contribution scheme – trust-based and contract-based.
See here for an explanation of trust-based and contract-based arrangements.
The People’s Pension is a DC scheme.