Actuary

A pensions professional who estimates the long-term cost of providing pensions and advises on any contributions needed to fund a pension plan, taking into account inflation, interest rates, how long people live and other factors.

Additional State Pension

This was paid on top of the Basic State Pension under the old State Pension, before 6 April 2016. It was based on an individual’s earnings between limits set by the government each year.

Additional voluntary contributions (AVCs)

These are contributions you can pay on top of what you’re already contributing to the Plan whilst being an active member; AVCs can be used to provide additional income when you retire.

Annual allowance (AA)

The annual allowance, which is the maximum that can be paid towards your pension in any tax year before an additional tax charge is payable.

Basic State Pension (BSP)

The flat rate pension paid at State Pension age under the old arrangement to a single person who has paid enough National Insurance contributions during their working life. For the purposes of the State Pension deduction, the BSP payable is taken as the amount over the last 12 months before you leave service, retire or die (whichever occurs first).

Corporate Trustee

A company that acts as the trustee for a pension plan and has a legal duty to safeguard members’ benefits. Emerson UK Trustees Ltd. is the Corporate Trustee for the Emerson UK Pension Plan. It has a Board of Directors.

Deferred member

Either an employee or former employee of Emerson who hasn’t yet taken a pension from the Emerson UK Pension Plan.

Defined benefit (DB)

This is a type of pension plan where you’ve earned a pension payable for life, based on how long you were in the Plan, your final pensionable salary and the pension plan’s accrual rate.

Defined contribution (DC)

This is a type of pension plan where you pay contributions from your salary to an individual pension savings pot. There are a number of ways you can access savings in a DC Plan.

Dependant

This is someone who, at the discretion and judgement of the Trustee, is financially dependent (or interdependent) on a member under the terms set out in the Plan Rules.

Expression of wish form

A form used to let the Trustee know who you would like to nominate for any lump sum benefits in the event of your death.

Guaranteed Minimum Pension (GMP)

This is the minimum pension a DB pension plan must provide for service before 6 April 1997, as one of the conditions of contracting out of the Additional State Pension (also known as the State Second Pension (S2P) or State Earnings Related Pension Plan (SERPS)). This means that a pension from the Plan can be considered to be made up of two parts, the GMP element and the excess above GMP.

HM Revenue and Customs (HMRC)

They are responsible for the registration of pension plans and the taxation of contributions and benefits.

Lifetime allowance (LTA)

This is the maximum value of pension benefits (excluding any State Pension) which you can receive before you have to pay a tax charge.

Normal retirement date (NRD)

This is currently the last day of the month following your 65th birthday.

Pensionable salary

The part of your basic salary which was used to calculate your pension.

Pensionable service

The service used to calculate your pension. It’s the number of years and days of continuous service you completed whilst you were building up benefits as an active member of the Plan. It’s rounded to the nearest month if you had an incomplete month of service.

Plan

It’s called the Emerson UK Pension Plan.

Plan Rules

A legally binding document detailing the pension benefits which must be provided to members of a pension plan.

Retired member

A member of the Plan who has started to receive their pension.

State Earnings Related Pension Plan (SERPS)

The Additional State Pension Plan that ran from 6 April 1978 to 5 April 2002. It was replaced by the State Second Pension (S2P) on 6 April 2002.

Transfer value

This is the cash amount the Plan will pay if you leave the Plan and transfer the value of your benefits to your new employer’s pension plan, or personal pension arrangement. The new arrangement must be a recognised Plan under HMRC requirements.

Trustee

The Trustee is a Board of Directors who are responsible for running the Plan under the Corporate Trustee. They have a legal duty to safeguard the benefits you’ve earned.