risk register

A document listing potential risks, their consequences to the scheme, and controls in place for mitigating those risks.

protected rights basis

Applies where a scheme is contracted out of S2P (or SEPRS) on a money purchasebasis, funded by NI rebates plus any incentive payable in the early years of contracting out.

protected liabilities

Applying where a scheme is in wind up or an assessment period for the PPF, they represent the value of members' benefits at PPF compensation levels, plus any other liabilities and the estimated expenses of winding up the pension scheme.

projected unit method

A method for calculating technical provisions which takes full account of future salary increases.

priority order

The provisions contained in the scheme documentation or in overriding legislation setting out the order of precedence of liabilities to be followed if the scheme is in wind up.

preserved benefits

Benefits arising on an individual ceasing to be an active member of an occupational pension scheme, payable at a later date (eg a member who leaves that employment before retirement date).

Retail Prices Index RPI

The index of retail prices (forall items) published by the Office of National Statistics, which is used to determine the rate of inflation over the previous 12 months. Increase to state pensions and index-linked gilts are equal to the rate of change in the RPI, while increases toprivate pensions in payment are dependent on the rate of change in the RPI.

State Second Pension.S2P

The earnings related element of the state pension scheme which has replaced the State Earnings Related Pension Scheme (SERPS) to enhance the basic state pension.

salary sacrifice

A written agreement between the employer and employee whereby the employee forgoes part of his/her future earnings in return for a corresponding contribution by the employer to a pension scheme.

schedule of contributions

Specifies the contributions payable by the employer over a given period of years,and includes any special contributions paid under a recovery plan.