| Accrual Rate | | In a defined benefit pension scheme this is the rate at which pension benefits build up for the member. They will get a certain amount for each year of pensionable service.
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| Active Member | | A member of a pension scheme who is in active pensionable service. |
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| Assessment Period | | The time when a scheme is being assessed to see if the Pension Protection Fund can assume responsibility for it. |
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| Assets | | These are everything that the trustees hold for the pension scheme. They can include investments, bank balances and any amounts owed to the scheme. |
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| Caseworker | | The PPF employee assigned to work with the trustees of schemes as they progress through the assessment period.
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| Compensation | | The payments made by the Pension Protection Fund to scheme members
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| Compensation Cap | | Compensation payable to deferred PPF members is capped at a level that changes annually.
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| Deferred Member | | A member of a pension scheme who is no longer in service, but will receive a benefit in the future.
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| Defined Benefit (DB) Scheme | | Also known as a final salary scheme. These are schemes where the final benefit is known to the member and is usually calculated through a formula using incorporating wages and length of service. Only DB schemes are eligible for coverage by the PPF.
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| Defined Contribution (DC) Scheme | | Also known as a money purchase scheme. In these schemes, the member will not know the final benefit. Benefit levels can depend on the success of investment returns and annuity rates
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| Independent Trustee | | A trustee who has no connection to the scheme, the employer or members Independent trustees may well be appointed to a scheme when the employer is bankrupt. |
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| Indexation | | The way in which payments may be adjusted with reference to changes in the retail prices index. |
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| Insolvency Event | | A qualifying insolvency event must happen to a company before its scheme can be considered for the PPF.
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| Liabilities | | Amounts that a pension scheme will have to pay now and in the future. The most common liability is paying pensions. |
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| Pensioner | | A scheme member who is currently receiving a pension from the scheme. |
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| Retail Prices Index | | The general index of retail prices published by the Office for National Statistics.
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| Revaluation | | The name used for increases in deferred compensation. |
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| Section 120 Notice | | The form that insolvency Practitioners use when informing the PPF that a company with a pension scheme has suffered an insolvency event.
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| Section 143 Valuation | | The valuation of a scheme carried out by an actuary at the end of an assessment period, which will determine whether or not the scheme can pay its members above PPF levels of compensation. |
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| Trustee | | A person responsible for adminstering the assets and liabilities of a pension scheme.
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