earnings-related

adjective FINANCE, HR

Definition

› used to describe a pension in which the amount of the payments is related to the amount that someone earned in their job: The state earnings-related pension scheme was set up to provide a pension for those without occupational or personal pensions. New legislation introduced a graduated state pension, with earnings-related contributions securing a higher pension on retirement.

→ See also SERPS

(Definition of earnings-related adjective from the Cambridge Business English Dictionary © Cambridge University Press)