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Jargon Buster

Buy Out

A means by which trustees secure payment of benefits (for one or more members) by purchasing a policy from an insurer. Sometimes the policy is in the name of the trustees, other times it may be assigned to the member. May also be used where (more recently) companies specifically set up for the purpose take on certain liabilities of a scheme.

Bridging Pension

A special type of pension paid between the date a member retires and the date when the member reaches state pension age. Usually it stops when the state pension starts..

Block (or Bulk) Transfer

A transfer in a single transaction of all or part of the assets and liabilities of a scheme to another scheme or arrangement.

BSP

Basic State Pension

BCE

Benefit Crystallisation Event

Benefit Cystallisation Event

The events arising out of the FA04 which then trigger a test against the member's lifetime allowance.

Basic State Pension

The flat rate of state pension a person will receive if the minimum amounts of National Insurance have been paid.

Barber

The key decision in the ECJ on pensions as part of pay, and triggering the often complex matter of equalisation between males and females.

Beneficiaries

The person or persons who will benefit from the trust, either now or at some future date.

Bequest

A gift (usually of an asset) in a person’s will or testament.

Business property relief

A relief (either partial or complete) from IHT for certain qualifying types of business interest or assets used in a business.

Articles

AON Pension Trustees Ltd v MCP Pension Trustees Limited [2010] EWCA Civ 377

This case is important on two levels. From a practical perspective, it is a stark reminder to all trustees of the importance of keeping accurate and up-to-date records of their beneficiaries. Equally the case shows how vital it can be to take out insurance on the winding-up of a trust.

From a technical perspective, the case is important because it confirms, for the first time, that the protection afforded by section 27 of the Trustee Act 1925 can be extended to trustees of pension schemes. However, trustees cannot rely on the s27 protection when they have already had ‘notice’ of a claim. The judgment examines what constitutes notice for these purposes.

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