codes of practice

The Pensions Regulator's codes of practice give practical information about how trustees can comply with legal requirements, andset out the standards of conduct and practice expected.

closed scheme

A pension scheme which does not admit new members. Contributions may or may not continue and benefits may or may not be provided for future service.

closed scheme

A pension scheme which does not admit new members. Contributions may or may not continue and benefits may or may not be provided for future service.

closed scheme

A pension scheme which does not admit new members. Contributions may or may not continue and benefits may or may not be provided for future service.

cash flow

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.

cash flow

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.

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.