|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.
|A member of a pension scheme who is in active pensionable service.|
|The time when a scheme is being assessed to see if the Pension Protection Fund can assume responsibility for it. |
|These are everything that the trustees hold for the pension scheme. They can include investments, bank balances and any amounts owed to the scheme.|
|The PPF employee assigned to work with the trustees of schemes as they progress through the assessment period.
|The payments made by the Pension Protection Fund to scheme members
|Compensation payable to deferred PPF members is capped at a level that changes annually.
|Consumer Prices Index (CPI)|
|The general index of consumer prices published by the Office of National Statistics. The increases to PPF compensation in deferment and payment for certain periods of service are linked to CPI. Please see FAQs for further details.|
|A member of a pension scheme who is no longer in service, but will receive a benefit in the future.
|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.
|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
|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.|
|The way in which payments may be adjusted with reference to changes in the retail prices index.|
|A qualifying insolvency event must happen to a company before its scheme can be considered for the PPF.
|Amounts that a pension scheme will have to pay now and in the future. The most common liability is paying pensions.|
|A scheme member who is currently receiving a pension from the scheme.|
|Retail Prices Index (RPI)|
|The general index of retail prices published by the Office of National Statistics. The increases to PPF compensation in deferment and payment for certain periods of service are linked to RPI. Please see FAQs for further details.|
|The name used for increases in deferred compensation.|
|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.
|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.|
|A person responsible for adminstering the assets and liabilities of a pension scheme.