Basis Point

Benchmark

Beneficiary

Benefit in Kind

Benefit Statement

Bid-Offer Spread

Bond

Book Reserve Scheme

Bridging Pension

Buy-Out

Basis Point                        One hundredth of one per cent (0.01%)

Benchmark                        Target or measure against which performance will be judged; used to assess the performance of a fund or investment portfolio.

Beneficiary                        A person who is entitled to benefit under a pension scheme, or who will become entitled in specific circumstances (e.g. on the death of a member).

Benefit in Kind                  Benefit given other than in cash which forms part of remuneration; if taxed under Schedule E, may be included for pension purposes under Revenue rules (but may or may not be included in pensionable pay by the scheme rules).

Benefit Statement             A statement of the benefits payable in respect of an individual in certain circumstances, e.g., death, retirement, etc.

Bid-Offer Spread                In unit-linked investment contracts, the difference between the price at which units can be purchased ('Offer' price) and the price at which they can be sold back to the investment manager ('Bid' price) on any given day.

Bond                                 Certificate of debt issued by a company, a government or other institution.  Bond holders are creditors of the issuer and interest is paid at the rate stated at the time of issue. The term 'bond' is also used to describe a buyout policy.  See Personal Retirement Bond

Book Reserve Scheme      Unfunded pension scheme which is accounted by a provision in the employer's accounts.  Common in some European countries.

Bridging Pension               An additional pension paid between the date of retirement and some later date, when it will reduce or be discontinued.  The most common type of bridging pension is paid in the interval between the date of retirement and the Social Welfare pension age, where Social Welfare benefits are taken into account in calculating the scheme pension, but members retire before these become payable.

Buy-Out                             The purchase by the trustees of a pension scheme of an insurance policy or bond in the name of a member or other beneficiary following termination of service, retirement, or on winding up of a scheme.  The bond is bought in substitution of the member's rights under the pension scheme or under a pensions adjustment order.  Under the Pensions Act, purchase of such a bond on leaving service may be at the option of the member or, in certain circumstances, at the option of the trustees.