This Guide does not make a distinction between defined benefit (DB) and defined contributions (DC) funds. The fundamental rationale for RI does not depend on whether a fund provides a DB or DC benefist. Neither should it depend on whether the fund is guaranteed by the state. All funds should seek to use RI to protect (and potentially enhance) long-term returns, regardless of their structure. 

In practice, there may be differences in the implementation of RI that can be attributed to whether the fund is DB or DC scheme. However, such differences will normally be a consequence of selecting the right RI approach for the fund’s Asset Liability Management and core investment strategy. All pension funds have a responsibility to do this, and have the same range of generic options to consider. 

See further information in the sections of this tool: Step 1. Developing a Policy and ESG strategies