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Pensions Terminology

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 qualifications@pensions-pmi.org.uk

Ordering

The Eighth edition of Pensions Terminology is available at £20 per copy or £15 per copy when ordering ten or more. It can also be bought as a pdf file for individual or company intranet use. For further details and to download a copy of the order form please contact qualifications@pensions-pmi.org.uk

Pensions Terminology (Eighth Edition) is sponsored by Willis Towers Watson.

Willis Towers

Copyright

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.

Liability

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.
 

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VALUATION BALANCE SHEET

A comparison of the value of the [assets] with the [actuarial liability] showing the elements of these amounts in the form of a [balance sheet], with an amount for [actuarial surplus] or [actuarial deficiency] as a balancing item.

The results of an [actuarial valuation] may be presented in other ways.

VALUATION BASIS

Commonly used by [actuaries] to mean the [funding method] and/or [actuarial assumptions].

VALUATION DATE

The effective date of the [actuarial valuation].

VALUATION METHOD

See [funding method].

VALUATION SUMMARY

A summary of an [actuarial valuation] that must be sent to the [Pensions Regulator], together with the [recovery plan] details.

Submission is via [Exchange].

VENTURE CAPITAL

The term used to describe a subset of [private equity], covering the seed to expansion stages of investment.

VESTED RIGHTS

The [benefits] to which a member is already entitled.

VOLATILITY

The frequency and magnitude of price changes of investments.