- Helping members of occupational pension schemes to better understand their benefits.

15th October 2019
:: Scheme Member | Glossary | Glossary G-K

Glossary G - K
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Grouped Personal Pensions (GPP)
A collection of money purchase contracts arranged by the employer (to which he may or may not contribute) on behalf of participating employees with a personal pension provider- mainly insurance companies.
Guaranteed Minimum Pension (GMP)
The minimum pension a defined benefit pension scheme must pay to a member as a condition of being contracted out of SERPS, the Additional State Pension between 6th April 1978 and 5th April 1997.
Her Majesty’s Revenue & Customs (HMRC)
Was formed on 18th April 2005, following the merger of the Inland Revenue and HM Customs & Excise Departments. HMRC impose the rules to which registered pension schemes must conform.
Hybrid scheme
An occupational pension scheme that provides the better of two alternative calculations such as final salary and money purchase basis, or, it may be an occupational pension scheme that provides a combination of both types of benefit.
A state of health, either physical or mental, which limits or restricts the ability of the member to continue working.
Ill-health benefit
A benefit paid to a member before normal pension age or Normal Retirement Date on the grounds of ill-health.
Impaired life annuity
A pension arrangement that is set up specifically to reflect a lower future life expectancy of a specified illness or impairment.
The design of some pension schemes that take into account the payment of state scheme pension benefits. A common method of integration is a reduction to the amount of pensionable salary used by the scheme when calculating pension benefits, to reflect the amount of state pension expected. Therefore, the scheme is designed to pay a pension reduced by the amount of expected basic state pension, rather than paying a pension wholly in addition to the basic state pension.
Investment returns
The amount of capital and income arising from investments by the pension scheme.

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