Accrual Rate
Accrued Benefits
Active Member
Actuarial Assumptions
Actuarial Funding Certificate
Actuarial Reduction
Actuarial Valuation
Actuary
Added Years
Additional Voluntary
Administrator
Alternative Arrangement
Annual Report
Annuity
Approved Minimum
Approved Retirement
Approved Scheme
ARF
AMRF
Assets
Atypical Employment
Auditor
Augmentation
Authorised Trade Union
Average Earnings Scheme
The rate at which pension benefit is built up as pensionable service is completed in a defined benefit scheme. Often expressed as a fraction of pensionable salary, e.g., 1/60th for each year of service.
The benefits for service up to a particular point in time, whether vested rights or not. These benefits may be calculated in relation to current earnings or projected earnings and allowance might also be made for any increases provided for by the scheme rules or by legislation. Sometimes known as accrued rights.
A member of a pension scheme who is in "reckonable service" - i.e., currently in the employment to which the scheme relates, and who is included in the scheme for a pension benefit.
In a defined benefit scheme the set of assumptions made by the actuary as to rates of return, inflation, increase in earnings, mortality, etc. which form the basis of an actuarial valuation or other actuarial calculation.
A certificate required by the funding standard under the Pensions Act, stating whether the scheme is capable of meeting specified liabilities in a statutory order of priority in the event of its being wound up on the date of the certificate.
A reduction made to the accrued benefits of a member to offset any extra cost arising from the payment of benefits before normal pension age.
An investigation by the actuary into the ability of a pension scheme to meet its benefit promise. This is usually done to calculate the recommended contribution rate which takes account of the actuarial values of assets and liabilities of the fund. Such an investigation is also needed so that the actuary can complete a funding certificate.
An adviser on financial matters involving the probabilities relating to mortality and other contingencies affecting pension scheme financing. The Pensions Act regulates who may function as actuary to a scheme. In the context of PRSAs, the Act also defines a PRSA Actuary, an actuary who must be employed or retained by a PRSA provider.
In private sector schemes this means the provision of extra benefit by adding a period of pensionable service in a defined benefit scheme, arising from the payment into the scheme of a transfer value, the payment of additional voluntary contributions, or by way of augmentation. The term may have different meanings in the context of public sector schemes.
Contributions made by a member over and above his/her normal contributions, if any, in order to secure additional benefits.
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A person regarded by the Revenue Commissioners as responsible for the management of a pension scheme.
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In a less formal sense it means the person or body which manages the day to day administration of the scheme.
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Under the Pensions Ombudsman Regulations, the Administrator can include a great many persons who provide services to a scheme, or who apply or interpret its rules.
One of the available methods of choosing member trustees under the Pensions Act regulations. Under this method, members are asked to approve the employer's proposals for putting member trustees into place. If the members reject these proposals, an election under the standard arrangement takes place.
The Pensions Act requires the trustees of a pension scheme to communicate information about the scheme, its administration and its financial position on a regular basis. The content of the annual report is specified in the disclosure regulations . A shorter annual report may be issued for defined benefit schemes with fewer than 50 active members and for all defined contribution schemes.
A series of payments made at stated intervals until a particular event - usually the death of the person receiving the annuity - occurs. It is normally secured by the payment of a single premium to an insurance company. It may remain level during payment, or increase to compensate in whole or in part for increases in the cost of living. It can be designed to be paid only to the individual annuitant for life, or may be paid on to a surviving dependant on the death of the annuitant.
An Approved Retirement Fund which is subject to restrictions on the drawdown of capital before age 75. Needed if an individual does not fulfill minimum income conditions.
A fund managed by a qualifying fund manager in which a self-employed person or a proprietary director can invest the proceeds of a retirement annuity or an occupational pension scheme on retirement. Non-pensionable employees who hold retirement annuity contracts also qualify. The proceeds of additional voluntary contributions can also be invested in an ARF (or AMRF) if the trusts of the scheme permit this. See also Approved Minimum Retirement Fund.
An occupational pension scheme which is approved by the Revenue Commissioners under Chapter II Part I of the Finance Act 1972. See also Exempt Approved Scheme.
AMRF
See Approved Minimum Retirement Fund.
ARF
See Approved Retirement Fund.
Assets
The property, investments, debtors, cash and other items of which the trustees of a pension scheme are the legal owners.
Employment which is other than fulltime and permanent; usually understood to embrace part-time, temporary, fixed-term contract and seasonal working.
Auditor
An individual or firm appointed to report on the accounts of a company or other entity (such as a pension scheme).
The term used to describe the provision of additional benefits for or in respect of individual members, where the cost of this provision is borne by the pension scheme itself and/or by the employer.
A trade union which has a negotiating licence under the Trade Union Acts and which represents members of the pension scheme.
A scheme where the benefit accruing for each year of membership is related to pensionable earnings for that year. These schemes are not common.