Additional State Pension<\/strong> Annuity<\/strong> Assets<\/strong> Appropriate personal \/ stakeholder pension<\/strong> Basic State Pension<\/strong> Beneficiary<\/strong> Bonds<\/strong> \u2018Fixed-interest securities\u2019 are investment vehicles issued by public companies, local authorities, government and also private companies (corporate bonds) which carry a fixed rate of interest normally payable over a specified period. UK Government fixed interest securities are called \u2018gilts\u2019 and can be bought and sold on the market. Their value generally rises when interest rates are low and falls when interest rates are high. Corporate bonds tend to pay a higher rate of interest than those issued by public bodies because of the higher risk of default.<\/p>\n \u2018Index-linked securities\u2019 were devised specifically for pension schemes and were first introduced in the UK in 1981. The index link refers to the amount of capital invested and a fixed rate of interest is also payable on the current capital value and so is itself indexed.<\/p>\n Combined Pension Forecast<\/strong> Contracted out<\/strong> Contracted-out rights<\/strong> Contracted in<\/strong> Controlling director<\/strong> Defined benefit scheme<\/strong> Defined contribution scheme<\/strong> Earnings threshold<\/strong> Employment and Support Allowance<\/strong> Employment service<\/strong> Equities<\/strong> Final salary scheme<\/strong> Free-standing Additional Voluntary Contribution (FSAVCs)<\/strong> Financial Services Authority (FSA)<\/strong> Group personal pension scheme<\/strong> Home Responsibilities Protection (HRP)<\/strong> Hybrid scheme<\/strong> Incapacity Benefit<\/strong> Lower Earnings Limit <\/strong> Member<\/strong> Mixed benefit scheme<\/strong> Money-purchase scheme<\/strong> National Insurance (NI) contributions<\/strong> Normal Retirement Age<\/strong> Occupational pension scheme<\/strong> Occupational pension scheme managers<\/strong> Occupational pension scheme trustees<\/strong> Pension<\/strong> Pension Credit<\/strong> Pension Protection Fund<\/strong> Pension scheme<\/strong> The Pensions Advisory Service<\/strong> The Pension Service<\/strong> Pensionable service<\/strong> Pensioner<\/strong> The Pensions Regulator<\/strong> Personal pension scheme<\/strong> Private pension scheme Qualifying year<\/strong> Retirement age<\/strong> SERPS<\/strong> Stakeholder pension scheme<\/strong> State Pension<\/strong> State Pension age<\/strong> State Pension deferral<\/strong> State Pension forecast<\/strong> State Second Pension<\/strong> Tax relief<\/strong> Unit-linked<\/strong> War Disablement Pension<\/strong> War Widow\u2019s\/Widower\u2019s Pension<\/strong> Source: The Pension Service<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" What you need to know Additional State Pension The earnings-related part of the State Pension built up in the State Second Pension and\/or the State Earnings Related Pension Scheme (SERPS).<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[285,304,307,312,353,388,410],"_links":{"self":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/357"}],"collection":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=357"}],"version-history":[{"count":0,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/357\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThe earnings-related part of the State Pension built up in the State Second Pension and\/or the State Earnings Related Pension Scheme (SERPS).
\n
\nAdditional Voluntary Contributions (AVCs)<\/strong>
\nEmployee contributions payable to a salary related occupational scheme that are over and above the normal contributions required by the scheme rules. This can be a useful way for people to get additional benefits from their occupational scheme.<\/p>\n
\nPurchased with an individual pension pot built up in a money purchase arrangement to provide a pension that is usually payable for life.<\/p>\n
\nProperty or resources which have a monetary value.<\/p>\n
\nThis is a term used to describe a personal pension or stakeholder pension that is contracted out.<\/p>\n
\nThe flat rate part of the State Pension that is paid to everyone who has enough qualifying years through having paid or been treated as having paid or been credited with National Insurance (NI) contributions.<\/p>\n
\nUsually used to describe a person entitled to benefit under a pension scheme.<\/p>\n
\nIn general, \u2018Bonds\u2019 fall into two main categories.<\/p>\n
\nProvides members of private pension schemes with an estimate of how much they are likely to get from both their State and their current private pension.<\/p>\n
\nSomeone is contracted out if they join a pension scheme that provides benefits in place of the State Second Pension (formerly SERPS).<\/p>\n
\nRights held in a pension fund that derive mainly from the National Insurance (NI) contribution rebate and its investment return.<\/p>\n
\nAny private pension scheme that provides benefits in addition to, and not replacing, the State Second Pension (formerly SERPS) is commonly referred to as being \u201ccontracted in.\u201d<\/p>\n
\nA director, who on his own or with associates, owns or controls 20 per cent or more of the ordinary shares of the employing company or has done so at any time after 16 March 1987 and within ten years of retirement or leaving service or Pensionable service. Special restrictions apply to controlling directors who are members of approved schemes.<\/p>\n
\nA scheme that provides benefits that are usually related to the scheme member\u2019s salary rather than how much is paid into the scheme and how well the payment has been invested.<\/p>\n
\nSee Money-purchase scheme.<\/p>\n
\nThis is an amount of earnings stipulated within certain tax rules that allow you to invest more than \u00a33,600 in a personal pension if you meet other requirements relating to your age and your earnings.<\/p>\n
\nFrom 27 October 2008 Employment and Support Allowance (ESA) replaces Incapacity Benefit and Income Support.<\/p>\n
\nThe length of time you have worked for an employer. This is not to be confused with Pensionable service.<\/p>\n
\nEquities are investments in a stock exchange listed company, where the value of the investment (shares) is dependent upon the performance of the company and the general state of the stock market. They also, normally, generate income through the payment of dividends. Equities held in UK pension funds generally fall into two categories, those listed on the London Stock Exchange (UK equities) and those listed on a foreign stock exchange (overseas equities).<\/p>\n
\nA type of Defined benefit scheme where the pension payable is based on the length of time that someone has been a member of the scheme and his or her earnings in the final years leading to retirement.<\/p>\n
\nEmployee contributions that are made to a pension provider under the terms of an existing occupational pension contract but are entirely separate from the occupational pension scheme.<\/p>\n
\nAn independent non-governmental body that regulates the financial services industry, promotes understanding of the UK\u2019s financial systems and helps protect consumers.<\/p>\n
\nAn arrangement with a personal pension provider that allows a group of individuals to take out a personal pension on a group basis. They are usually set up by an employer on behalf of its employees but can also be set up by a group of self-employed individuals. The main advantage of such an arrangement is that it can result in the scheme making lower administration charges.<\/p>\n
\nThis helps protect a person\u2019s entitlement to the basic State Pension if they are unable to undertake regular employment due to caring for a child\/children or a sick or disabled person at home. It may also help a person qualify for additional State Pension, via the State Second Pension. From April 2010, HRP will be replaced by a system of credits for parents and carers and periods of HRP awarded before 2010 will be converted to credits for people reaching SPA after this date.<\/p>\n
\nSee Mixed benefit scheme.<\/p>\n
\nPaid if Statutory Sick pay (SSP) has ended, or if you cannot get SSP. Incapacity Benefit is not paid if you are over State Pension Age when you became sick. From 27 October 2008 Employment and Support Allowance replaced Incapacity Benefit for new customers only.<\/p>\n
\nThe minimum amount that someone must earn in a tax year in order to build up entitlement to State benefits, including Incapacity Benefit, and Employment and Support Allowance, Jobseeker\u2019s Allowance and State Pension. The Lower Earnings limit for 2009\/10 is: Weekly \u00a395.00 and Monthly \u00a3412.00.<\/p>\n
\nA person who has joined a pension scheme and is entitled to benefit under the scheme.<\/p>\n
\nA type of hybrid scheme that allows an employer to run a salary-related and money-purchase section under the same scheme.<\/p>\n
\nA private pension scheme providing benefits on a money-purchase basis, with the exception of death benefits. The amount payable is based upon the amount paid in and how well that money has been invested.<\/p>\n
\nRegular payments to the State to help build up entitlement to benefits including Jobseeker\u2019s Allowance, Incapacity Benefit and State Pension.<\/p>\n
\nThe earliest age at which a member of an occupational pension scheme can be paid a pension without a reduction in benefits.<\/p>\n
\nA type of private pension scheme run by some employers to provide a pension for their employees. Sometimes referred to as a works pension, a company pension or superannuation scheme.<\/p>\n
\nThe people responsible for ensuring that occupational pension schemes operate effectively and within the law.<\/p>\n
\nThe people who represent the interests of scheme members. They must act independently from the employer. Where one of the trustees is also the employer, the trustee duties and the responsibilities arising from the role as employer must be kept separate.<\/p>\n
\nRegular payments from a pension scheme run by the State, a former employer or private financial company, that are usually payable for life.<\/p>\n
\nPension Credit is an income-related benefit for people aged 60 or over living in Great Britain that provides, or contributes to, a guaranteed level of income. It also means that for the first time, people aged 65 and over will be rewarded for some of their savings and income they have for their retirement.<\/p>\n
\nWill compensate members of eligible defined benefit schemes when there is a qualifying insolvency event in relation to the employer and there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation.<\/p>\n
\nA type of savings account set up to provide an income in retirement.<\/p>\n
\nOPAS is a voluntary independent organisation that provides information about occupational pensions, personal pensions and stakeholder pensions.<\/p>\n
\nPart of the Department for Work and Pensions (DWP), which provides information about State pensions to both existing and future pensioners.<\/p>\n
\nThe length of time that someone has been a member of a pension scheme. This is not to be confused with Employment service.<\/p>\n
\nA person who is claiming or receiving money from his pension scheme.<\/p>\n
\nThe Pensions Act 2004 introduced a new independent body, The Pensions Regulator, to help protect members of occupational pension schemes by focusing on those schemes it considers to be at most risk from either fraud or poor management and administration. The Pensions Regulator replaced the Occupational Pensions Regulatory Authority from April 2005.<\/p>\n
\nA type of private pension scheme, including a stakeholder pension scheme, run by banks, investment companies and building societies.<\/p>\n
\nThis can be a personal pension scheme, including a stakeholder pension, or an occupational pension scheme.<\/p>\n
\nA tax year in which you have sufficient earnings upon which you have paid, are treated as having paid or have been credited with, National Insurance contributions.<\/p>\n
\nThis is the age when you choose to leave work. It can also be used in reference to the Normal Retirement Age stated under certain private pension schemes, which relates to when you can start collecting your private pension. It is not necessarily the same as your State Pension age.<\/p>\n
\nThe State Earnings Related Pension Scheme reformed by the State Second Pension in 2002.<\/p>\n
\nA type of personal pension scheme that has to meet minimum standards set down in law. Stakeholder pensions are flexible and portable with a cap on annual management charges.<\/p>\n
\nThe pension payable by the State, which is based on an individual\u2019s National Insurance contribution record. See additional State Pension and basic State Pension.<\/p>\n
\nThe earliest age at which someone can receive the State Pension.<\/p>\n
\nA term used to describe the decision to put off claiming the State Pension. People who do this may receive a higher State Pension or a one-off taxable lump sum payment.<\/p>\n
\nThe State Pension forecast gives details of State Pension already built up and the amount that someone is likely to get at State Pension age.<\/p>\n
\nThe additional State Pension which reformed the State Earnings Related Pension Scheme (SERPS) pension in April 2002 to provide a more generous pension for low and moderate earners.<\/p>\n
\nGenerally, contributions payable to a pension scheme that is approved by the HM Revenue & Customs for tax purposes, are not subject to Income Tax.<\/p>\n
\nA type of personal pension where contributions are used to buy shares in funds chosen from a wide range of investments. The value of these investments can fall as well as rise but over the longer period they may offer higher returns. Costs are normally deducted from the fund.<\/p>\n
\nA pension for people who have been injured or disabled during wartime, or as a result of their service in Her Majesty\u2019s Armed Forces, subject to certain conditions.<\/p>\n
\nA pension for people whose husband\u2019s, wife\u2019s or surviving civil partner\u2019s death was caused by, or happened sooner because of, service in Her Majesty\u2019s Armed Forces.<\/p>\n