How your DC pension is protected

All contributions made to your DC plan accountAccount An agreement you make with a financial institution to handle your money. You can set up an account for depositing and withdrawing, earning interest, borrowing, investing, etc.+ read full definition (both yours and your employer’s) go to the plan administrator – typically an insurance companyInsurance company A company that sells insurance products. Some companies sell only life insurance. Some sell only property insurance. Others sell all types of insurance.+ read full definition or other financial institution. The plan administrator holds the money in your plan account and invests it according to your instructions.

This money is held “in trustTrust An account set up to hold assets for a beneficiary. A trustee manages the assets until the beneficiary reaches legal age.+ read full definition” and cannot be accessed by your employer, even if they are in dire financial need.


Although your money is held in trust, the value of your DC plan isn’t guaranteed. The value can change depending on the type of investments you hold.

2 key points

  1. Your money is held in trust
  2. The value of your plan is not guaranteed
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