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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.
 

ACTUARIAL VALUE OF ASSETS

The value, following actuarial practice, placed upon the [assets] for the purpose of an [actuarial valuation]. It could be an assessed value, the [market value] or some other value.

ACTUARIES' CODE
A statement published by the Institute and Faculty of Actuaries, in relatively simple terms, of the standards an [actuary] can be expected to observe when serving the public and clients (including their employer).
ACTUARY

A professional adviser on financial questions involving probabilities relating to mortality and other contingencies.

For statutory purposes in the UK, the term automatically includes Fellows of the Institute of Actuaries and Faculty of Actuaries.

Persons with other actuarial qualifications may be approved by the Secretary of State for a specific purpose.

See also [scheme actuary].

A-DAY

The Appointed Day, 6 April 2006, when the new tax regime introduced by FA2004 came into force.

ADDED YEARS

The provision of extra benefits in a [defined benefit scheme] by adding a notional additional period of [pensionable service]. This may arise by the payment of [AVCs] from the receipt of a [transfer payment] or as an [augmentation].

ADDITIONAL PENSION

The [State Second Pension (S2P)] (or [State Earnings Related Pension Scheme] before 6 April 2002).

ADDITIONAL VOLUNTARY CONTRIBUTIONS (AVCs)

Contributions over and above a [member's normal contributions] which the [member] elects to pay to an [occupational pension scheme] in order to secure additional [benefits].

See also [FSAVCs].

ADMINISTRATOR
  1. The person or persons notified to [HMRC] as being responsible for the management of a pension scheme.
  2. A type of insolvency practitioner in relation to companies under the Insolvency Act 1986.
  3. A person or body responsible for the day to day management of a pension scheme. They may or may not be the [Scheme Administrator].
ADMITTED BODY

An organisation that chooses to be admitted to the [LGPS] in order to provide access to the scheme for some or all of its employees.

Admitted bodies usually provide a public service.

AGE DISCRIMINATION

The unlawful discrimination by [employers] and [trustees] or managers of a [pension scheme] to discriminate against [members] or prospective members on the basis of age. There are exemptions for certain age related rules and practices in pension schemes.

The relevant statutory provision is the Equality Act 2010. This incorporates the previous Employment Equality (Age) Regulations 2006 (S.I. 2006/1031) as amended by the Employment Equality (Age) (Amendment No.2) Regulations 2006 (S.I. 2006/2931).

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