Glossary and Definitions

A pension scheme that no longer admits new members. Contributions may or may not continue and benefits may or may not be provided for future service.

Commutation factors dictate the extent to which pension benefits are increased or reduced by late or early retirement. They also determine the relationship between the lump sum taken (if any) and the level of the remaining pension.

The length of time you’ve worked for an employer who participates in the Fund, without a break in service.

The government’s principal measure of price inflation. It’s an internationally comparable measure of inflation that employs methodologies and structures that conform to international legislation and guidance.

Commonly used to describe a scheme that provides benefits in place of the State Second Pension (S2P, previously SERPS). Currently these benefits from the scheme are paid for by means of a rebate of the relevant NI contributions