Jargon Buster
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.
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.
Articles
Failed gifts and trusts
A refresher on the rule in Lassence v Tierney [1849].
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