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Jargon Buster

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.

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.

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.

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.

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.

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.

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.

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.

SCON

Scheme contracted out number

SIPP

Self-invested Personal Pension Plan

SSB

Short Service Benefit

SDCS

Simplified defined contribution scheme

SSAS

Small Self Administered Pension Scheme

SSCB

Social Security Contributions & Benefits Act 1992

SHP

Stakeholder Pension Plan

SERPS

State Earnings Related Pension Scheme

SPA

State Pension Age

S2P

State Second Pension

SFP

Statement of Funding Principles

Scheme Actuary

The actuary appointed by the trustees of a scheme.

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.

Safeguarded Rights

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

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.

Articles

New UK residence rules

The UK Government plans to introduce a new residence test. The aim originally was to bring these new rules into effect from 6 April 2012, but this has now been postponed to 6 April 2013. This is a summary of the current proposals, as amended by the draft legislation that was published in December 2012. It is possible the rules could be changed again before they come into force.

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