beneficiary

A member of a pension scheme who is entitled to a benefit from the scheme or adependant who will becomeentitled on the death of the member.

benefit schedule

A schedule prepared by theadministrators listing all scheme members (includingdependants in receipt of benefits), and the benefits towhich they are entitled. Usually drawn up when the administration is changing hands (eg when a scheme is being transferred to the PPF).

benefit schedule

A schedule prepared by theadministrators listing all scheme members (includingdependants in receipt of benefits), and the benefits towhich they are entitled. Usually drawn up when the administration is changing hands (eg when a scheme is being transferred to the PPF).

benefits

Any payments made to a beneficiary, including tax-free lump sums, pension payments and death benefits.

benefits statement

A statement or estimate of benefits payable in respect of an individual's membership of a pension scheme, eg annually during employment, on retirement, in the event of wind up.

beta

Returns on a portfolio which can be attributed to movements in the market as a whole, rather than the skills of a particular fund manager. Usually achieved by holding a portfolio whichexactly mirrors a particular index

breach of trust

Any act or omission on the part of the trustee that is inconsistent with the terms ofthe trust agreement or the law of trusts.

buy-out

The purchase of an annuity for each member of a scheme which will guarantee pension benefits as nearly as possible equal to those which would otherwise be paid by the scheme.

buy-out debt

The amount of money required to purchase life assurance annuities for each member of a scheme which will guarantee pension benefits equal to those which would otherwise be paid by the scheme.
This may also be referred to as the 'section 75 debt' or 'debt on the employer'.

What are simplified employee pension plans (SEPs)?

An employer may sponsor a simplified employee pensionplan or SEP. SEPs are relatively uncomplicated retirement savings vehicles. A SEP allows employers to make contributions on a tax-favored basis to individual retirement accounts (IRAs) owned by the employees. SEPs are subject to minimal reporting and disclosure requirements.
Under a SEP, the employee must set up an IRA to acceptthe employer's contributions. As a general rule, the employer can contribute up to 25 percent of the employee's pay into a SEP each year, up to a maximum of $40,000.
Starting January 1, 1997, employers may no longer setup Salary Reduction SEPs. However, the Small BusinessJob Protection Act of 1996 (Public Law 104-188) permitted employers to establish SIMPLE IRA plans beginning in 1997. A SIMPLE IRA plan allows salary reduction contributions up to $6,000 in2001 ($7,000 in 2002).