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 email@example.com
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.
- TACTICAL ASSET ALLOCATION (TAA)
A short term deviations from the long term [asset allocation strategy] to reflect an [investment manager's] views on markets.
- TARGETED MONEY PURCHASE SCHEME
A [money purchase scheme] where there is a stated intention, but not a promise, to provide a particular level of [benefit].
- TAX RELIEF AT SOURCE
See [pension tax relief at source].
- TECHNICAL ACTUARIAL STANDARDS (TASs)
The standards set by the [BAS] replacing the technical [Guidance Notes] issued by the Institute and Faculty of Actuaries.
They are divided into Generic and Specific TASs. The Generic TASs are Reporting, Modelling and Data and the specific TASs include Pensions and Insurance.
- TECHNICAL PROVISIONS
Under the scheme funding provisions of PA2004, The amount required in an actuarial calculation to make provision for a [defined benefit scheme]'s accrued or past service [liabilities].
See also [Certificate of Technical Provisions].
- TERM ASSURANCE POLICY
A policy which only provides a [lump sum] on death before a specified date.
Sometimes referred to as a term insurance policy.
- TERMINATION BENEFITS
Used in [IAS 19] to mean employee [benefits] payable as a result of either:
- an entity's decision to terminate an employee's employment before the [normal retirement date]; or
- an employee's decision to accept voluntary redundancy in exchange for those benefits.
- THE PENSION SERVICE
Is part of the Department for Work and Pensions ([DWP]). Responsible for administering and paying the state pension.
- THE PENSIONS ADVISORY SERVICE (TPAS)
An independent voluntary organisation that is grant aided by the Department for Work and Pensions [DWP]. TPAS provides information and guidance to members of the public covering State, company, personal and stakeholder schemes. Also helps members of the public with problems, complaints or disputes with their occupational or private pension arrangements.
- TIME WEIGHTED RETURN
A relative measure of the [rate of return] earned by the investments in a fund, independent of the timing of cash flows into or out of the fund. This is the normal measure used for inter-fund performance comparisons.
To be contrasted with [money weighted return].