approved scheme

The term used until recentlyby HMRC to describe those schemes meeting the requirements which entitle them to the tax privileges associated with pension funding. Now known as registered schemes.

assessment date

The date of the employer's insolvency, and the date on which the Pension ProtectionFund assessment period starts

augmentation

The provision of additional benefits offered to members of a DB scheme, normally where the cost is borne by the scheme and/or the employer.

Additional voluntary contribution. (AVC)

Contributions over and above a member's normal contributions if any, which the member elects to pay to an occupational pension scheme in order to secure additional benefits.

Additional voluntary contribution. (AVC)

Contributions over and above a member's normal contributions if any, which the member elects to pay to an occupational pension scheme in order to secure additional benefits.

back end loading

An arrangement between trustees and employer allowing the employer to make good a deficit by paying the extra contributions needed in unequal instalments. The early instalments will be smaller than the later ones. This expression is used in relation to the recovery plan.

basic state pension (BSP)

The flat rate (not earnings related) state pension paid toall who have met the minimum NI contribution requirements, their spouses, subject to certain conditions, and widow(er)s.

benchmark

A measure against which fund management performance is to be judged.A series of appropriate indices is chosen which reflects the requirements of the trustees. Usually a target is set which requires an agreed percentage better performance from the fund manager than the benchmark.

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).