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

20th August 2017
:: Scheme Member | Glossary | Glossary O-Q

Glossary O - Q
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Occupational pension scheme
A pension scheme set up by an employer to provide benefits for one or more employees.
 
 
Opt-out
The process where an active member of an occupational pension scheme decides he or she no longer wants to accrue benefits in the scheme and so will 'leave' - or opt-out of - the scheme. Benefits accrued prior to opting-out will be preserved.
 
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Pension age
The age at which you can take your pension benefits, subject to the rules of your scheme without requiring employer or trustee consent and without incurring any penalty.
 
 
Pension benefit
A benefit payable to a scheme member or dependents following your retirement or death. 
 
 
Pension Commencement Lump Sum
 
The term used for a tax-free lump sum taken on commencement of benefits being paid from a registered pension scheme.
 
 
Pension Protection Fund (PPF)
A statutory corporation established to help members of an eligible defined benefit pension scheme where the sponsoring employer no longer exists and where there are insufficient assets to pay benefits.
 
 
Pension scheme
An arrangement that provides benefits: on retirement having reached a particular age; on death; or in the event of ill-health.
 
 
Pension simplification
The term used for the changes to the taxation of pension schemes introduced by the Pensions Act 2004, many of which were effective from 6th April 2006 (A-Day).
 
 
Pensionable salary
Those member earnings used by schemes to determine the benefits payable at pension age.
 
 
Pensionable service
The time period a person is credited with as being an active member of the pension scheme, which, in a defined benefit scheme is used in the calculation of that member’s benefits.
 
 
Pensioner member
A member of a pension scheme who is receiving pension benefit.
 
 
Personal Pension
A pension arrangement set up for an individual on a money purchase basis. A registered pension scheme but not an occupational pension scheme.
 
 
Preservation date
The date when you stopped accumulating pension benefits within your pension scheme (i.e. you ceased to be an active member).
 
 
Preserved benefit
The benefits granted when a member ceases to be an active member of a defined benefit scheme, such benefits will be paid at a later date. Alternative terms include deferred benefit, deferred pension, and preserved pension.
 
 
Preserved member
Describes a person who has ceased to be an active member of a defined benefit scheme before their normal pension age or Normal Retirement Date, and is not receiving pension benefit. Often called a ‘deferred member’.
 
 
Primary protection
A method of protecting an individual’s pension fund against a future lifetime allowance charge by the setting of an increased personal lifetime allowance figure by HMRC, with whom the value of the fund at 6th April 2006 must be registered. It is available where an individual’s pension fund is already in excess of the lifetime allowance at 6th April 2006 and if the individual is still a member of, or still contributing to a registered pension scheme.
 
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