Which statement best describes the purpose of a PDC?

• A. It reveals remuneration payable from the PRSA
• B. It shows the fund's performance over the last year
• C. It shows a projection of retirement benefits at retirement in return for contributions
• D. It estimates expected investment returns

Answer: (C)

A PDC is a planning tool that shows what retirement benefits you might receive at retirement based on your current contributions and the assumptions used (such as investment growth, charges, and retirement age). It translates what you contribute now into a projected pension amount at retirement, helping you understand how changes in contributions or retirement plans could affect future income. It isn’t a statement of pay or remuneration, it doesn’t report fund performance from the past year, and it isn’t simply an estimate of investment returns—it’s a forward-looking projection of retirement benefits tied to contributions.