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Jargon Buster

S2P

State Second Pension

Safeguarded Rights

The contracted out part of a pension credit [pension sharing on divorce].

Salary Sacrifice

An arrangement which may have certain tax/NI benefits between an employer and employee where an employee sacrifices part of his earnings in return for a contribution to the member's pension scheme.

Scheme Actuary

The actuary appointed by the trustees of a scheme.

SCON

Scheme contracted out number

SDCS

Simplified defined contribution scheme

Section 67

Concerns protection for members benefits where modifications to the scheme are being made. Originally introduced by the Pensions Act 1995, and since heavily amended by the Pensions Act 2004.

SERPS

State Earnings Related Pension Scheme

Settlor

The person or persons who created the trust or added funds/assets to it. Can be named in the trust deed but anyone who adds cash or assets to the trust will be taxed as the settlor, even if not named.

Severing a joint tenancy

The action of changing from joint tenancy to tenancy in common, to prevent the right of survivorship applying. Can be done by one joint owner unilaterally or by all the joint owners together.

SFP

Statement of Funding Principles

Sharia Will

Under a Sharia Will, at least two-thirds of a deceased Muslim person's estate must be distributed among surviving relatives in fixed shares, as prescribed by the Quran. Up to one-third can be bequeathed to anyone who is not entitled to a fixed share, such as a charity.

SHP

Stakeholder Pension Plan

SIPP

Self-invested Personal Pension Plan

Small Self Administered Scheme

A type of scheme set up pre A Day often for family company directors, which scheme has fewer than twelve active members where at least one member was connected with another member, a trustee or a participating employer.

SPA

State Pension Age

SSAS

Small Self Administered Pension Scheme

SSB

Short Service Benefit

SSCB

Social Security Contributions & Benefits Act 1992

Stakeholder Pension Scheme

Introduced from April 2001, basically a simple registered defined contribution arrangement which meets certain standards and is registered with the Pensions Regulator. Unless exempt, employers must offer access to a stakeholder scheme to their employees, but there is currently no obligation on an employer to contribute.

State Earnings Related Pension Scheme

The additional (to the basic state pension) component of state pension, now replaced by the State Second Pension (S2P) in April 2002.

State Pension Age

The date on which state pensions come into payment. Now female SPA is being raised to age 65 in stages between 2010 and 2020.

Statement of Funding Principles

Part of the new scheme funding regime, a statement by the trustees of their policy as to how they expect the scheme's statutory funding objective will be met and how any deficit will be paid off.

Statement of Investment Principles

Trustees must (having taken suitable advice and consulted the employer) prepare and maintain a written statement setting out their principles regarding the scheme's investments.

Statutory Funding Objective

Defined benefit schemes must have assets to cover their technical liabilities, which is part of the new scheme funding regime and is the actuarially calculated amount the scheme needs to provide for the scheme's liabilities.

Articles

Proposed Changes to Pensions Legislation

The draft Finance Bill was issued on 9 December 2010. Royal Assent is not expected until July 2011, so it is possible the laws summarised below may change before they are enacted. Comments on the draft legislation are invited before 9 February 2011.

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Latest News

COVID-19 Update

At PWT Advice LLP we are closely monitoring the global impact of the current COVID-19 pandemic and following the advice of the Government. The health and welfare of our staff team, clients, and their families is our number one priority.

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