The amount of actual money being received and spent. In the case of a pension scheme, the amount of money being received into the scheme in contributions and investment returns and the amount of money being paid out by the scheme.
In common parlance, in the case of DB schemes, projected cash flows usually refer to cash required in the future by the trustees to pay for pension liabilities when they fall due.
Friday, 16 November 2012
cash balance scheme
A type of scheme in which a percentage of salary is set aside each year for each member. The employer undertakes to ensure that each annual contribution willgrow by a specified amount which is linked to prevailing interest rates. At retirement, the member's minimum accumulated fund will be determined by the specifiedminimum rate of growth for each contribution. It may bear no relation to levels of pay and it may be considerably higher than theminimum, if investments have been successful.
Defined benefit scheme.
A scheme in which the benefits are defined in the scheme rules and accrue independently of the contributions payable and investment returns. Most commonly, the benefits are related to members' earnings when leaving the scheme or retiring, and the length of pensionable service.
Defined contribution scheme.
A scheme in which a member's benefits are determined by the value of the pension fund at retirement. The fund, in turn, is determined by the contributions paid into it in respect of that member, and any investment returns.
death in service (DIS)
The notice served on the employer by the trustees of ascheme in wind up, setting out the debt due from the employer to the scheme. Thedebt is the shortfall betweenthe value of the assets and the liabilities.
debt notice
The notice served on the employer by the trustees of ascheme in wind up, setting out the debt due from the employer to the scheme. Thedebt is the shortfall betweenthe value of the assets and the liabilities.
deferred anuity
An insurance policy which guarantees a series of payments, which may be subject to increases and which will start at retirement.The payments are made regularly until the death of the policy holder. The policycan be set up to provide benefits for dependants afterthe death of the policy holder.
Scotiabank has concluded the acquisition of ING DIRECT Canada from Netherlands ING Group,
Canada-based Scotiabank has concluded the acquisition of ING DIRECT Canada from Netherlands ING Group, following the receipt of all regulatory approvals.
Acquisition follows an agreement signed between the two parties for a total cash consideration of C$3.1bn (€2.5bn) in August 2012.
Commenting on the deal, Scotiabank Group Canadian Banking head Anatol von Hahn said the acquisition supports the firm's strategic goals and enables to broaden its funding base, while ING DIRECT's revenues and earnings support the overall growth objectives.
"ING DIRECT will continue to operate as a separate and distinct wholly-owned subsidiary, providing low cost and highly competitive products to self-directed customers," Hahn added.
Both organisations will remain distinct in the initial stages and changes to name or branding of ING DIRECT will not happen in the next few months, but options will be explored in future.
ING is selling its direct banking businesses to streamline operations and repay the state aid it received during the 2008 financial crisis.
With assets of $670bn as at 31 July 2012, Scotiabank manages over 81,000 employees and serves about 19 million customers in morethan 55 countries across the globe through its affiliates.
Acquisition follows an agreement signed between the two parties for a total cash consideration of C$3.1bn (€2.5bn) in August 2012.
Commenting on the deal, Scotiabank Group Canadian Banking head Anatol von Hahn said the acquisition supports the firm's strategic goals and enables to broaden its funding base, while ING DIRECT's revenues and earnings support the overall growth objectives.
"ING DIRECT will continue to operate as a separate and distinct wholly-owned subsidiary, providing low cost and highly competitive products to self-directed customers," Hahn added.
Both organisations will remain distinct in the initial stages and changes to name or branding of ING DIRECT will not happen in the next few months, but options will be explored in future.
ING is selling its direct banking businesses to streamline operations and repay the state aid it received during the 2008 financial crisis.
With assets of $670bn as at 31 July 2012, Scotiabank manages over 81,000 employees and serves about 19 million customers in morethan 55 countries across the globe through its affiliates.
annuity
A series of payments, which may be subject to increases, made at stated intervals untilthe end of the agreed period or the life of the annuitant. This is often achieved by means of an insurance policy underpinned by guarantees.
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