Pension Transfer Terminology

Pension Transfer Terminology – Pensionfinder

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    Pension Transfer Terminology

    Pension Fund TransferThe jargon used in the pension industry can be confusing. Rather than staring blankly at your financial advisor while he/she explains the nuances of pension transfers, read the explanations of each phrase below.

    Defined Benefit Pension Scheme: Also called a final salary scheme, your pension is calculated according to the how long you worked at a company and how large your salary was when you stopped working.
    Defined Contribution Pension Scheme: This is simply a pension scheme where you and your employer are fully aware of the contribution limits.
    Group Personal Pension Plans and Group Stakeholder Plans are offered by employers.
    An Occupational Scheme is created by a company to help their employees save for retirement.
     A Personal Pension allows employees and employers alike to contribute a set amount into a money purchase scheme set up by a financial services group.
    The Protected Retirement Age is now 55 years of age and is offered to those on certain types of pension scheme.
     A Scheme Wind Up marks the end of a pension plan which occurs when it is deemed to be too expensive, new employers are in charge or a merger takes place.
     A Stakeholder Pension is simply another form of pension plan but this one must act in accordance with certain government rules.
     The State Pension is given to every UK resident. Its value is calculated by the National Insurance record of you and/or your partner.
     The State Second Pension is an addition to the regular State Pension.