Jargon Buster
Early Retirement
A member takes benefits from a scheme earlier than the normal retirement (or pension) date under the scheme. Generally, this can only take place after age 50 (55, from April 2010). HMRC refers to this as Normal Minimum Pension Age.
Employer Financed Retirement Benefit Scheme
A scheme providing benefits for employees or former employees. It is not a Registered Pension Scheme.
ERF
Early retirement factor
ECON
Employer contracted out number
EFRBS
Employer Financed Retirement Benefit Scheme
EPB
Equivalent Pension Benefits
EPP
Executive Pension Plan
Expression of wishes
Often also referred to as a death benefit nomination, it is the means by which members express the preferred (but not binding) destination of any lump sum benefits payable on death. The ultimate decision on payment is a matter for the trustees.
Enhanced Protection
One of the forms of protection for members from the Lifetime Allowance Charge under FA04 allowing members, regardless of the amount of their pre-A Day benefits. Strict conditions apply to it.
Eighteen to Twenty Five Trust
A trust created in accordance with FA 2006 (see also Young Persons’ Trust) for young beneficiaries who must receive their entitlement under the will by no later than age 25.
Employee Benefit Trust
A trust created either by a company or the shareholders of that company in favour of its employees, former employees and their families/dependents.
Estate
The assets belonging to someone who has died, which now need to be administered by the personal representatives.
Estate administration
The act of administering the deceased’s estate, collecting in his/her assets, paying all debts, paying any legacies or bequests, before distributing the residue.
Executor (Executrix: female)
The person appointed in a deceased person’s will to administer his/her estate.
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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