THIS BEGINNER’S GUIDE APPLIES TO DEFINED BENEFIT (DB) AND DEFINED CONTRIBUTION (DC) OCCUPATIONAL PENSION SCHEMESThis beginner’s guide looks at the legal framework in relation to the investment strategy of registered defined benefit (DB) and defined contribution (DC) occupational pension schemes, including:•core investment duties•suitability and restrictions on investments•diversification: equities and bonds•balancing risk and return (asset allocation)•impact of market conditions•additional asset classes•investment risk•obtaining and considering proper advice before making investments•Statement of Investment Principles (SIP)•DC-specific regulationsFor clarity, the legal framework applicable to the Local Government Pension Scheme (LGPS) is outside the scope of this guide.Core investment dutiesIn DB schemes, the employer promises a defined level of pension, and investment risk is primarily borne by the employer.In DC schemes, the member’s benefits depend on the performance of their investment pot, and investment risk is borne by the member.Trustees are responsible for setting the investment