protected modification

protected modification
In relation to occupational pension schemes, a modification to the terms of the pension scheme is a protected modification if it would or might:
• Change a member's subsisting rights from a defined benefit nature (defined benefit scheme) to a money purchase nature or replace the defined benefits with money purchase benefits (See money purchase scheme/money purchase plan).
• Reduce the rate of a member's pension in payment.
Additional modifications may be prescribed in the future.
Related links
multi-employer scheme (multi-employer pension schemes)

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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