SORP Statement of recommended practice.

Guidance on best accountingpractice for the presentation of financial information prepared by the particular sector to which the SORP relates (in this case, occupational pensions).

statutory funding objective

The requirement for an ongoing scheme to have sufficient and appropriate assets to cover its technical provisions, or a recovery plan to reach that position.

statutory independent trustee

An independent trustee, appointed at the discretion of the regulator to a scheme where the employer has become insolvent. The independent trustee must be chosen from the regulator's register of approved independent trustees.

statutory independent trustee

An independent trustee, appointed at the discretion of the regulator to a scheme where the employer has become insolvent. The independent trustee must be chosen from the regulator's register of approved independent trustees.

statutory objectives

The three specific objectives set for The Pensions Regulator in the Pensions Act 2004:
*. to protect the benefits of members of work-based pension schemes
*. to promote good administration of work-based pension schemes
*. to reduce the risk of situations arising that may lead to claims for compensation from the Pension Protection Fund

stock lending

A temporary transfer of securities (for example, equities) by an owner (typically a pension scheme) to a borrower (usually a fund manager). The borrower undertakes to return those securities to the lender at pre-agreed time.

strategic investment

Carried out by trustees as part of the preparation of their SIP, it is the practice of making long term decisions on asset allocation so that they are able to pay pension benefits as they fall due.

superannuation

The pension paid to retired members of an occupational pension scheme.

swaps

Arrangements by which one type of income stream is swapped for another (eg an income stream at a variable rate of interest may be swapped for an income stream at a fixed rate of interest). Such an arrangement is often made through an investment bank.
Interest rate swaps are the most frequently used but there are types of swaps available, eg to offset the riskof inflation or longevity.

tactical investment

Day to day investment decisions (eg stock selection)for which the function and the responsibility may be delegated to the fund managers.