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Pension Terminology - A Glossary Of Key Terms

R to Z

Retirement GrantA lump sum (where applicable) when a scheme member retires. It is usually paid into a bank account via the BACs system. Members have the option to convert some of their pension into lump sum
Resolution BodiesThese are bodies listed in Schedule 2, Part 2 of the LGPS Regulations 2013 (at present, all Town & Parish Councils fall under this definition). Resolution Bodies can choose whether or not to take part in the LGPS for some or all of their staff
Scheduled BodiesThese are bodies listed in Schedule 2, Part 1 of the LGPS Regulations 2013. Further information concerning the eligibility of new employees can be found in Becoming an Employer. Scheduled Bodies must take part in the LGPS for all eligible staff
Scheme EmployerThe collective name of Resolution Bodies and Scheduled Bodies. Admitted Bodies are also generally treated as Scheme Employers for the purposes of the Regulations
Scheme MemberThe collective name for Active, Deferred & Pensioner Members (sometimes just referred to as "Members" within this guide)
Secondary Contribution RateThe secondary contribution rate is an adjusted to the primary contribution rate and is used to allow for any funding deficit or surplus that is place at a certain point in time
Starter PackEither an electronic or hard copy of pack that provides the member with various pieces of the information about the Scheme as well as how to transfer in previous pensions etc
Statutory ResolutionA resolution passed by a Town and Parish Councils (or another Resolution Body) stating that a specific employee or a group of employees will be deemed eligible to join the scheme
Statutory NotificationA statement sent to scheme members showing the information about their pension record held by the fund
UnderpinThe 'underpin' is a provision brought in from April 2014 to protect members: Born before April 1957; Who were a member of the Scheme on 1 April 2012; and who do not have gap of more than 5 years service (applying after April 2012) The protection means that we need to calculate their post April 2014 service using the old final salary methodology as and the CARE methodology and then award the member whatever calculation produces higher pension benefits
Variable Time EmployeeAn employee whose pay is calculated by reference to duties rather than the number of hours worked OR an employee whose duties only have to be performed on an occasional basis

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