Pensions Terminology is a glossary of terms which is produced in conjunction with the Pensions Research Accountants Group (PRAG).
Its purpose is to encourage all pensions professionals to speak the same language. It is revised and updated periodically and the current (eighth) edition was launched in June 2011. It is now recognised as a standard reference work.
If you have any comments regarding Pensions Terminology contact the Qualifications Department at firstname.lastname@example.org
The Eighth edition of Pensions Terminology is now available for free as a pdf only. You can download it here.
Pensions Terminology (Eighth Edition) is sponsored by Willis Towers Watson.
Copyright to Pensions Terminology has been ceded by PRAG to The Pensions Management Institute in recognition of our educational role. Attention of users is drawn to the existence of this copyright, but as both organisations are anxious to encourage standardisation of terminology for all those associated with pensions, the use of definitions of individual terms is encouraged.
Reproduction of larger sections will normally be permitted on application, provided that such use is acknowledged.
Neither PRAG, nor the members of any working party or committee thereof, can accept any responsibility or liability whatsoever (whether in respect of negligence or otherwise) to any pension scheme trustee or member or third party, wherever situate, as a result of anything contained in or omitted from this publication nor the consequences of reliance or otherwise on the content of this publication.
- NATIONAL EMPLOYMENT SAVINGS TRUST (NEST)
NEST is a [qualifying scheme] under the Government's Workplace Pension Reforms, which can be used by employers to meet the [automatic enrolement] requirements.
See also [NEST Corporation].
- NATIONAL INSURANCE CONTRIBUTIONS OFFICE (NICO)
The office, part of [HMRC], responsible for the collection and recording of national insurance contributions.
- NATIONAL INSURANCE SERVICES TO PENSIONS INDUSTRY (NISPI)
A Directorate within the [National Insurance Contributions Office] (NICO). It deals with [occupational pension schemes] and [appropriate personal pension schemes] that are [contracted out] of the state additional pension.
- NEST CORPORATION
NEST Corporation is the trustee body responsible for overseeing the [National Employment Savings Trust (NEST)].
See also [Automatic Enrolement].
- NET ASSETS STATEMENT
A summary of the net assets ([assets] less [liabilities]) of an [occupational pension scheme], usually presented as part of the [audited accounts] in the [annual report].
This does not take account of the liabilities to pay benefits after the date of the statement which is dealt with in the [actuarial valuation].
- NET BOOK VALUE (NBV)
An accounting measure of value, which is based on the original cost of the [asset] less any depreciation, amortisation or impairment costs made against the asset. This may differ to the asset's [market value].
See also book value.
See [Expression of Wish].
- NON CONTRIBUTORY SCHEME
A scheme that does not require contributions from [active members].
- NON DISCRIMINATION RULE
The non discrimination rule prohibits a "Responsible Person" (the [trustees], managers or the [employer]) from discriminating against, harassing or victimising a [member] of the scheme. The rule does not apply to [pension credit] members.
The relevant statutory provision is s61 of Equality Act 2010.
- NORMAL CONTRIBUTIONS
See [ordinary annual contributions] and [member's normal contributions].