exemption clause

A clause in a trust documentwhich gives trustees a degree of protection in the event of a breach of trust.

exoneration clause

A means by which a membercan indicate to the trustees a preference as to the recipient of any lump sum death benefit.

engagement letters

Used by accountants, investment banks and other advisers to set out the terms under which they are givingadvice, they are now used by a wide range of advisers and suppliers. The precise form of the document will vary greatly depending on which type of adviser you are appointing. There are statutory requirements prescribing how scheme actuaries and scheme auditors must be appointed, and also the professional bodies that regulate your advisers will have their own requirements.

engagement letters

Used by accountants, investment banks and other advisers to set out the terms under which they are givingadvice, they are now used by a wide range of advisers and suppliers. The precise form of the document will vary greatly depending on which type of adviser you are appointing. There are statutory requirements prescribing how scheme actuaries and scheme auditors must be appointed, and also the professional bodies that regulate your advisers will have their own requirements.

effective date

The date at which the liabilities and assets of the scheme are measured for thepurposes of a valuation.

earmarking

The application of a court order made when a memberof a pension scheme divorces, directing the trustees to pay some or all ofthe member's benefits to theex spouse at the time they would otherwise have become payable to the member. Civil partners are treated in the same way.

earmarked scheme

A DC scheme where all the benefits are secured by an insurance policy. Under the umbrella of the policy, each member accumulates an individual (earmarked) pension fund.

final salary underpin

The entitlement of a DC scheme member to a minimum level of salary related pension if the member's accumulated pension pot is not sufficient to fund it

financial adviser

Advises individual members about the options that are best for them and how they should organise their investments.

Financial Services Authority. (FSA)

The FSA's overall aim is to promote efficient, orderly and fair markets and to help retail consumers achieve a fair deal.
In relation to occupational pension schemes, the FSA regulates:
*. the marketing and sale of individual pension contracts
*. personal advice on investment matters
*. the training and competence of investment managers
*. the management of investment funds