Pension Terminology - A Glossary Of Key Terms
A to D
| Active Member | An employee who is currently paying into the Pension Scheme |
| Added Years | An arrangement in place with the Pension Fund whereby a member can purchase additional pensionable service. The option to take out new Added Years contracts ended in April 2008, but existing contracts were able to continue. |
| Additional Maternity or Adoption Leave | Leave under section 73 or 75B of the Employment Rights Act 1996(1) |
| Additional Pension Contributions (APC) | An arrangement with us to buy additional pension in the Scheme. This replaces what was formally known as Added Regular Contributions (ARCs) and Added Years (as explained above). We take extra contributions from the scheme member for a contracted number of years |
| Additional Paternity Leave | Leave under the Additional Paternity Leave Regulations 2010(2)A legal agreement which covers the terms of admission that apply to an Admitted Body |
| Additional Regular Contributions (ARC) | These are similar to APCs. The option to take out new ARCs contracts ended on 31st March 2014 |
| Additional Voluntary Contributions (AVC) | Members can top up their pension benefits by building up a fund of money that is invested separately and dependent on the investment returns received. This can be used to buy extra pension provision at retirement (including a lump sum. We offer an in-house scheme with Prudential although some members still pay AVCs to our legacy providers |
| Administering Authority | This is official name given to the role of Wiltshire Pension Fund in terms of our responsibility for administering the Scheme. Technically, Wiltshire Pension Fund is affiliated to Wiltshire Council and hence Wiltshire Council is both the administering authority as well as a Scheme Employer |
| Admission Agreement | A legal agreement which covers the terms of admission that apply to an Admitted Body |
| Admitted Body | Bodies that have an admission agreement with the Pension Fund to allow its employees to join or remain in the LGPS. There are three kinds of admission bodies: 'Community Admission Bodies' (CABs), 'Transferee Admission Bodies' (TABs) and 'Other Admission Bodies' (OABs) |
| Annual Benefit Statement | Each summer we send members a summary of the benefits that we currently hold for them; these amounts are calculated based on the information that employers send to us. These are normally sent out in the summer and they are related to the value of benefits as at 31st March that year |
| Assumed Pensionable Pay | Assumed Pensionable Pay is a way of notionally calculating how much pensionable pay a member should have been receiving for any period of time when they were actually on reduced or nil pay (for example due to a long-term absence). More detailed information is available in the Employer's Guide |
| CARE Pay | CARE pay is the amount of pensionable pay (2014 definition) that a member received during a set period of time. We calculate a member's annual pension for all service after 1 April 2014 by multiplying the CARE pay by 1/49 |
| Death Grant | If a member dies in service or shortly after retiring, a lump sum amount of money will be due. Normally this Death Grant will be paid to the person(s) nominated on the Expression of Wish Form unless the Pension Fund has any reasons not to do so (e.g. because it was signed a considerable time ago or the nominated person is deceased). In the absence of an expression of wish form, the death grant will normally be paid to the person's estate |
| Deferred Benefits | An annual pension and possibly a lump sum held for a scheme member who has left the Scheme before retirement age. The benefits are held until retirement age (or whenever the member is eligible to draw them) and they are index-linked to keep pace with inflation |
| Deferred Members | An employee or former employee who at some point was paying into the pension scheme. These members will hold a deferred benefit |
| Discount Rate | A discount rate is used to 'discount' back the value of pension liabilities that are due in the future to the current day. The discount rate is calculated differently depending on the reason why the pension liabilities are being calculated |
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