In a defined contribution context, what does the term 'dynamisation' describe?

• A. The indexing in line with inflation of past remuneration
• B. A guaranteed minimum investment return to normal retirement age
• C. Opting to transfer part of a member's fund at retirement to an ARF
• D. The provision of actively managed funds as a default investment strategy

Answer: (A)

Dynamisation is about adjusting benefits to keep pace with changes in remuneration, usually by inflation‑indexing of past remuneration. In a defined contribution framework, this describes how the value placed on accrued rights or a retirement pot can be uprated to preserve purchasing power, rather than guaranteeing a minimum investment return, enabling a transfer to an ARF, or defining a default investment approach. The other options relate to guarantees, transfer choices, or investment strategy, not to adjusting benefit values for inflation.