telent Pensions
The website for members of the GEC 1972 Plan
telent Pensions
The website for members of the GEC 1972 Plan
Location: Useful Information -> Glossary
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Abbreviation |
Term |
Description |
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The rate at which benefits build up in a defined benefit scheme. In The GEC Plan, the Basis 1 pension is 1/50th of final pensionable earnings for each year of pensionable service, less offsets related to State pensions. For some members, Basis 2 or Basis 3 may provide a greater benefit (refer to the Plan booklet). |
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The pension and other benefits that you have earned for your service up to a given date. The pension is expressed as the amount payable at your normal retirement date. |
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An employee who is paying into the scheme and building up his/her pension. |
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Agreed assumptions used by the scheme actuary, including but not limited to life expectancy, investment returns and inflation. |
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The valuation process by which our appointed actuary estimates (based on the actuarial assumptions) how much money the Plan needs today to pay pensions that have been built up to date. The valuation is normally undertaken every three years. |
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The trustee has appointed an actuary to advise them on issues including funding, scheme design and the management of risk. One of our actuary's key responsibilities is to carry out the actuarial valuation. |
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6 April 2006.is the date upon which the tax treatment of UK pensions was simplified. A single tax regime now applies to all registered pension schemes. |
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See State Second Pension (S2P). |
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AVCs |
Contributions above the normal rate of contribution that an active member of our Plan may choose to pay in order to build up extra benefits. In The GEC Plan, AVCs may be paid to a variety of funds operated with Standard Life and BlackRock (refer to the AVC Investment Guide). |
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AA |
The maximum value of pension that a UK taxpayer may accrue in each tax year without giving rise to an additional tax charge. In the case of defined benefit schemes, the value is 10 times the pension built up over the year, the allowance being £245,000 for 2009/10. |
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A series of regular payments, usually made for the duration of the recipients's life. AVC funds can be used to purchase annuities. |
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The rate at which a fund is converted into an annuity. Rates change regularly with market conditions. |
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APP |
An individual arrangement by which individuals may contract-out of the State Second Pension on a defined contribution basis. However the Pensions Act 2007 includes proposals to no longer allow individuals to contract out in this way. For more information, refer to the Pension Service website. |
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The person appointed by the trustee to review and verify the financial statements of the scheme. |
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A flat rate State pension that is paid to qualifying individuals by virtue of their having met the necessary National Insurance Contribution criteria for the receipt of such payments. More information can be obtained from the Pension Service website. |
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BCE |
An event that triggers a test of a member's benefits against the lifetime allowance. (e.g. first starting to draw a pension). |
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One of two AVC Investment Management companies appointed by the Trustee to manage the AVCs of Plan members. |
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Surrendering of part of a pension in exchange for a tax-free lump sum (this can only be taken at the time the pension is first put into payment). |
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CETV |
The value of a deferred pensioner's benefits in one scheme, that the member may wish to transfer to another registered pension scheme. On certain occasions, the Courts may order that part of a CETV be transferred to another pension arrangement in order to provide benefits for a former spouse or civil partner following divorce proceedings. Such a requirement may also apply to active and pensioner members. |
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telent Limited (previously known as the General Electric Company plc and Marconi Corporation plc). |
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If an Employer is contracted out, members pay lower National Insurance contributions. However, certain benefits must continue to be paid by the Company Pension Scheme The GEC Plan is not contracted out and therefore this term is not relevant. |
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A company (as opposed to individuals) which acts as trustee of a pension scheme. |
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Certain benefits under the GEC 1972 Plan are based on your contributions, increased in line with credited interest. Credited interest is set by the trustee annually and is subject to a minimum of 2.5%. |
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DISC |
A facility whereby active members can purchase additional benefits, through the Selected Benefit Scheme, payable on death in service. This facility is now closed to new members. Existing members can no longer increase their level of cover. |
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A member who has ceased pensionable service and who has not yet started to receive a pension from the scheme. |
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A pension scheme which provides benefits based on a formula. Benefits are typically calculated by reference to the member's near-final earnings and length of pensionable service. The GEC Plan is a defined benefit scheme. |
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A pension scheme in which member/employer contributions are at a set rate (usually expressed as a percentage of earnings). Benefits depend on investment returns and annuity rates in force at the time benefits are paid. |
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DWP |
The Government department which includes the Pension Service. More information can be obtained from the DWP website. |
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In relation to a member, a spouse, ancestor or descendant (however remote); a spouse of such an ancestor or descendant; a brother, sister, uncle or aunt (whether of whole or half blood) and a spouse or descendant of such a person; the same relatives of a spouse; an individual entitled to any interest in the member's estate under his will; and an individual towards whose maintenance or support the member has contributed. |
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ERF |
Where members wish to take Early Retirement, their pensions at normal retirement age will be reduced to allow for the longer period that their pensions are expected to be paid. Reduction rates are determined by the Trustee after consulting with the actuary, |
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Your gross PAYE earnings, before deduction of pension contributions, but normally excluding the value of any benefits in kind. If you joined the Plan after 31 May 1989, an earnings cap (for the tax year 2009/10, £117,412) is applied to the maximum benefits that may be paid. This limit is reviewed yearly by the Trustee. |
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A limit introduced by the Government in 1989 to the earnings on which benefits could be based. This was abolished on A-Day and has been replaced by a scheme-specific cap within The GEC Plan (this is £117,412 for 2009/10). |
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END |
A director of a corporate trustee who has been nominated by the sponsoring employer. In The GEC Plan, SPT's ENDs are nominated and appointed by telent Limited. |
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The Company and those of its subsidiary and associated companies which, with the consent of the Company, participate in the Plan. |
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EPB |
A small pension provided within a company scheme, where employment was contracted out of the former State Graduated Pension Scheme. Some members of the GEC Plan have EPB entitlements. |
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To calculate your Final Pensionable Earnings, take the last 10 Plan years during which you have been a member and find the three consecutive Plan years that give the highest average pensionable earnings. If you have been a member for three Plan years or less, it is the average of pensionable earnings during the years of your membership). |
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FSA |
An independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000, and financed by the financial services industry, the body it regulates. The FSA is accountable to Treasury Ministers, and through them to Parliament. |
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FSAVC |
Members of Company pension schemes were able to contribute to these schemes instead of/as well as the company AVC arrangement, subject to the exchange of certain information between the two types of arrangement. Since A-Day, concurrent membership of different registered pension schemes has been permitted without the need for such administrative requirements. |
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FEL |
Where Plan members take their pension prior to State Pension age, they have an option to take more of their Plan Pension earlier, with a reduced Plan Pension once their State pension comes into payment. |
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RPI |
A prices index published monthly by the Government. In The GEC Plan, the minimum annual pension increase is based on RPI and is capped at 5%. |
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HMRC |
HMRC was formed in April 2005, following the merger of the Inland Revenue and HM Customs and Excise departments. HMRC governs the tax regime applicable to registered pension schemes. |
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IDRP |
Occupational pensions schemes are required by law to have such a procedure in place, to deal with disputes between members (or other specified individuals) and trustees. Click here to view The GEC Plan's IDRP. |
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LTA |
The maximum value of benefits that can be paid from all registered pension schemes to which a member has belonged, without giving rise to an additional tax charge. For defined benefit schemes, the value is 20 times the initial annual amount of pension, plus the amount of any tax-free cash sum. The allowance is £1,750,000 for 2009/10. |
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LPI |
For the GEC 1972 Plan, RPI capped at 5%. |
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MND |
A director of a corporate trustee who has been nominated by member representatives in accordance with statutory guidelines. In The GEC Plan, SPT's MNDs are elected via the PCC and appointed by telent Limited. |
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The minimum age under law at which a scheme member may receive benefits. This is age 50 for retirements on or before 5 April 2010 and age 55 for retirements thereafter. No minimum age applies in the case of early retirement due to ill health. |
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NAPF |
The NAPF describes itself as the leading UK body providing representation and other services for those involved in the Pensions Industry. |
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The facility whereby members can use the fund arising from a defined contribution scheme to purchase an annuity with any insurance company of their choice. In The GEC Plan, this option is available to most members who have AVCs. |
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This is where an active member who is continuing in employment chooses not to pay any further contributions and thus does not accrue any further pensionable service; a deferred pension is established in respect of pensionable service already completed. |
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PPF |
A fund from which payments are made to eligible members in prescribed circumstances in the event that a defined benefit scheme has insufficient assets to cover PPF compensation levels. |
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A Court order resulting in the splitting of pension rights following divorce. |
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This is operated by the Pension Service and may be able to help find an old pension. The service will try to match the information given with one of the schemes on their database and inform the enquirer of the name and address of the scheme administrator. |
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Your earnings in a complete Plan year. Special arrangements apply for determining pensionable earnings in any Plan year during which you were absent from work. If you joined the Plan on or after 1 June 1989 your benefits may be affected by the earnings limit referred to under the definition of earnings. |
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Your length of service with the employers, while a contributing member of the Plan. Pensionable service is calculated in complete years and months. |
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PCC |
A committee elected by GEC Plan members to represent the views of all members (actives, deferred pensioners and pensioners) as to matters affecting their interests. Three MND's, one from each member category, are nominated by the PCC for appointment to the Board of SPT. |
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A member of a scheme who is currently in drawing a pension. |
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PO |
The Pensions Ombudsman is empowered to investigate and determine any complaint or dispute of fact or law concerning a scheme. |
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The facility for a members of The GEC Plan to continue in employment whilst receiving payment of their accrued pensions. This facility is subject to approval of the company. |
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Any 12 months beginning on 6 April and ending on the next 5 April |
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QROPS |
An overseas pension scheme to which a CETV may be paid from a registered UK scheme. A list of QROPS which have consented to have their details published is available on the HMRC website. |
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SBS |
The in-house AVC arrangement that operated within The GEC Plan until November 2007. All balances have now been transferred to Standard Life or BlackRock. For some members however, SBS continues to provide death in service credit (DISC). |
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In relation to a member or pensioner who dies without leaving a surviving spouse, a person nominated by him before attaining 65 and before his pension commences, who was financially dependent on him at the time of nomination and remained so at his death, and who was accepted as such by the Trustee. |
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One of two AVC Investment Management companies appointed by the Trustee to manage the AVCs of Plan members. |
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SERPS |
STATE EARNINGS RELATED PENSION SCHEME (renamed State Second Pension in 2002) |
The State earnings-related pension scheme. This provides a pension related to the band of earnings between the State lower and upper earnings limits covering employment since April 1978. The pension is up to 25% of averaged band earnings for those who have participated fully in SERPS and reach State pension age on or before April 1999. Thereafter SERPS provides a pension reducing to 20% of averaged band earnings for those reaching State pension age on or after April 2010. Band earnings are revalued in line with a wages index each year. The State lower earnings limit for this purpose is approximately equal to the basic Social Security pension and the upper limit is about seven times that pension. |
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SPT |
The corporate trustee of The GEC Plan. |
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An earnings related State pension scheme which ran from April 1961 to April 1975. |
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SPA |
The earliest age from which a State retirement pension may be paid. Refer to the Pension Service website for more information. |
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S2P |
Formerly known as SERPS, the additional State Pension (or S2P) came into effect from 6 April 2002. More information can be obtained from the Pension Service website. |
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SIP |
A statement of the principles governing investment decisions, which our trustee is required by law to produce. Copies are available upon request to Scheme members, and certain groups or individuals as specified in the legislation. |
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SMPI |
Statements of the value of prospective pensions in today's terms. They are issued by both Standard Life and BlackRock to those Active and Deferred members of the GEC Plan who have AVCs. |
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In relation to an active member, the person who was the active member’s only spouse at the time of death. In relation to a pensioner, the person who was the pensioner’s only spouse when the pension began or when age 65 was attained (whichever was earlier), and remained the only spouse at the pensioner’s death. In relation to a deferred pensioner, the person who was the deferred pensioner’s only spouse when pension age was reached, and remained the only spouse at the deferred pensioner’s death. n.b. An unmarried member may nominate a specified dependant before commencement of pension or at age 65 (whichever is earlier). |
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TPAS |
TPAS is available to assist members and beneficiaries of a pension scheme in connection with difficulties which they have been unable to resolve with the trustee. |
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TPR |
TPR is the UK regulator of work-based pension schemes. It works with pension scheme trustees, scheme managers and employers to help protect employee pensions. If problems do develop, TPR has powers to put matters right. |
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A lump sum that may be paid to an individual in lieu of their entire pension. This is available in certain circumstances to members over age 60 where the total value of rights from all registered pension schemes is less than 1% of the lifetime allowance. Refer to the HMRC website for more information. |
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A legal document, which sets out the powers of the trustee and the rules governing the operation of a pension scheme. |
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The trustee of the Plan is Stanhope Pension Trust Limited. Its directors include Independent Directors who are selected from a register compiled by The Pensions Regulator, Employer Directors who are nominated by telent and nominees of the Pension Consultative Committee which is elected to represent all members of the Plan. |