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Jargon Buster


Pensions Act 2004


Pensions Act 1995

Participating Employer

Also in some schemes referred to as an Associated Employer. Usually used for multi-employer schemes. Participating employers will agree to participate in the scheme for some or all of its employees, usually by a deed of participation (or adherence).


Pensions Advisory Service (or tPAS, OPAS)

Payment Schedule

The schedule that each money purchase scheme will have setting out the rates (and date of payment) of contributions due to the scheme.


Pension Commencement Lump Sum

Pension Credit/Debit

The amount of benefit that an ex-spouse receives (and the member gives up) where there has been a pension sharing order (these are made under the Welfare Reform and Pensions Act 1999 providing for splitting of pension rights on divorce.

Pension Protection Fund

The fund set up under the Pensions Act 2004 to cover members of defined benefit schemes whose employer is insolvent and where there are insufficient assets to meet benefit liabilities. Schemes pay a levy to the PPF.

Pensionable Service

The period of service which a scheme uses in calculating a member's benefits (for example, in a defined benefit scheme, n60ths of Final Pensionable Salary for each year of Pensionable Service), or in a defined contribution scheme simply the period during which an employer's contributions will be payable.

Pensioner Member

A member of a scheme whose benefits have come into payment.

Pensions Advisory Service

Often still called OPAS (after its old name of the Occupational Pensions Advisory Service), the Pensions Advisory Service is a free service for members with queries about occupational or personal pension schemes.

Pensions Ombudsman

Principally, the Pensions Ombudsman deals with complaints by members. The process covers both occupational and personal pension arrangements. Generally, the Ombudsman will expect members to have used the internal disputes resolution procedure, and the Pensions Advisory Service.

Pensions Regulator

The independent regulator set up under the Pensions Act 2004. Key objectives are to protect member's interests, reduce the risk of claims on the PPF and promoting good administration of schemes. The Regulator has extensive powers, including the so-called "moral hazard" provisions (including contribution notices, financial support directions and restoration orders) aimed at preventing employers avoiding pension liabilities.

Personal allowance

The amount of income an individual can earn each tax eyar before being subject to income tax.

Personal Pension Scheme

A scheme usually provided by insurers. Personal Pension Schemes can take many different forms, but basically are simple money purchase arrangements into which either or both of the employer and employee make contributions.

Personal Representatives

The generic term for the people administering a deceased person’s estate. Covers both executors and administrators.


Potentially exempt transfer: a gift that is not immediately chargeable to inheritance tax, but will become chargeable if the donor dies within seven years of making the gift.


[Revenue] Practice Notes


Pension Protection Fund


Protected Rights


The law (Pension Schemes Act 1993) that protects a member's benefits that he has accrued in a scheme where he leaves before normal retirement date, with two or more years service. Now, members who have more than three months service (but not yet two years) have a right to a transfer of their cash equivalent, where previously they were entitled only to a refund of member contributions (which still applies to very early leavers with less than three months).

Primary Protection

One of the forms of protection for members from the Lifetime Allowance Charge under FA04 allowing members to register pre A Day rights of more than £1.5m.

Principal Employer

Usually used for the company establishing a scheme where other employers (participating employers) may join. The Principal Employer usually has the key powers as opposed to them being held by individual participating employers, which would be administratively complex.

Priority Rule

Section 73 of the Pensions Act 1995 introduced a priority order of liabilities when a scheme winds up. The rule was amended by the Pensions Act 2004.


A person appointed to supervise the trustees, usually by having to give consent before the trustees can take certain specified actions, possibly also having power to remove the trustees.


Pensions Schemes Act 1993


Paid up pension

Purpose trusts

Under English law, only individuals, companies and charitable purposes can be beneficiaries of a trust. Non-charitable purpose trusts exist in other jurisdictions, including most of the ‘tax havens’.


The effects of Shari’a law on will drafting & estate planning

More and more families in the UK have some connection to Shari’a law. For the practitioner, the impact of Shari’a law raises certain challenges. First, advisers need to know that the wills they are drafting are valid. Second, Shari’a law can have an impact on standard UK estate planning.

This article summarises the conflict of law rules, to show how Shari’a law can be relevant, and then gives a very brief overview of the Shari’a laws of succession. Practical examples are included to show the issues that practitioners need to look out for.

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