A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
A
Annual Premium
The regular payments you make into your pension in a year.
Arrears
An amount due in addition to the regular bill, generally due to a backdated adjustment.
AVC (Additional Voluntary Contribution)
Members of pension schemes can make additional payments into their existing pension scheme (or into a separate special pension arrangement) to supplement the pension benefits they will receive on retirement. These are subject to limits the Revenue Commissioners have set on the level of additional payments individuals can make in any one year.
B
Benefit Statement
A statement of the benefits payable from a pension scheme if you die, are disabled, or retire.
C
Cooling-Off Period
Customers with regular premium policies have 30 days from the date a policy is issued during which they are entitled to change their mind. If they decide to cancel their policy during this period, they will receive a full refund of any regular premiums paid. If a single premium has been paid, this will be refunded, less an adjustment for any downward movement in unit processed between the date of commencement and the date of cancellation.
Single premium customers have 30 days from the issue of their policy documents during which they are entitled to change their mind. If they decide to cancel their policy during this period, they will receive a refund of their investment, however a full adjustment will be made for any fluctuation in financial markets.
D
Death Benefit / Life Cover
Life Cover (Life): A lump sum payment to the spouse made on the death of the member.
Spouses Lump Sum (SLS): An additional lump sum payable to married members.
Spouses Pension (SDIS): An income provided to the spouse in the event of the member's death. This may be a fixed income or a target amount.The cost of these benefits may be payable in addition to the pension contributions (RSP Additional), be included in the pension contributions (RSP Deducted) or deducted from the pension fund (Q-Costed).
Defined Contribution Scheme
A pension scheme where the owner of the policy and/or their employer pays a regular premium or contribution. The retirement benefit is not guaranteed and will depend upon contributions made, performance of the fund in which the contributions are invested and the annuity rates available on retirement.
Disability Cover / Permanent Health Insurance
This benefit (PHI / Disability) is paid to replace part of your income if you are unable to work because of sickness or injury. The term "unable to work" is defined in the policy documentation governing your scheme.
Waiver of Premium (WOP) / Premium Protection provides for some or all of the pension contributions to be paid if the member is unable to work. The disability benefit is payable to age 60 or 65.The cost of these benefits may be payable in addition to the pension contributions (RSP Additional), be included in the pension contributions (RSP Deducted) or deducted from the pension fund (Q-Costed).
E
Expected Retirement Date
The date the member of a pension scheme is due to retire, normally between 60 and 75.
F
Fund Value
Monetary value of the policy at any point in time.
G
Group Employer PRSA
A Group Employer PRSA is an arrangement established by an Employer to facilitate the deduction and payment of PRSA contributions in respect of a number of employees. Each employee has an individual PRSA account and the Employer may also contribute to each account.
I
Individual Employer PRSA
Individual Employer PRSA is an arrangement established by an Employer to facilitate the deduction and payment of PRSA contributions in respect of one employee only. The Employer may also contribute to the employee's account.
Individual Personal PRSA
Individual Personal PRSA is a PRSA contract established by an individual, who pays the contributions directly to the PRSA provider.
L
Life Cover / Death Benefit
Depending on the type of cover chosen this amount will be paid on the death of the person(s) covered by the policy. This benefit (PHI / Disability) is paid to replace part of your income if you are unable to work because of sickness or injury. The term "unable to work" is defined in the policy documentation governing your scheme.
Waiver of Premium (WOP) / Premium Protection provides for some or all of the pension contributions to be paid if the member is unable to work. The disability benefit is payable to age 60 or 65.The cost of these benefits may be payable in addition to the pension contributions (RSP Additional), be included in the pension contributions (RSP Deducted) or deducted from the pension fund (Q-Costed).
Life / Disability Premiums
Premiums based on a death benefit or disability benefit.
Lump Sum Contribution
A customer can make a single premium contribution in a lump sum to their policy.
M
Managed Funds
A pool of assets which is invested in a mix of investments (including company shares, government stocks and property) on behalf of the policy holders. The purchase and sale of the assets is conducted by experienced fund managers and the performance of the fund is monitored regularly.
Member
Person within a scheme who has a pension fund.
Member Group
A group of members with similar characteristics (e.g. similar pension funding rates, similar benefits etc).
O
Overpayment
The amount by which the last payment received exceeds the last due amount and is offset against the next due amount. Alternatively, this amount could be due to a backdated adjustment.
P
PRSA
Personal Retirement Savings Plan. A PRSA is a long-term savings account designed to help people save for their retirement.
Paid-Up
Premiums can be suspended at any time, making the policy 'paid-up'. Any fund that has already accumulated will still benefit from any growth in fund prices. However, life cover charges will continue to be deducted from the policy and cover will continue as long as there is sufficient value in the fund to cover the charges.
Payment Frequency
Pension Plan
A plan approved by the Revenue, designed to provide an income in retirement. Tax relief many be available on contributions on the growth in the underlying investments of the plan is free of tax.
Pension Arrears
Any additional pension amount due, as a result of a backdated premium increase or other premium amendments.
Pension Holder
The person to whom the policy is issued, i.e. the owner of the policy.
Permanent Health Insurance / Disability Cover
Life Cover (Life): A lump sum payment to the spouse made on the death of the member.
Spouses Lump Sum (SLS): An additional lump sum payable to married members.
Spouses Pension (SDIS): An income provided to the spouse in the event of the member's death. This may be a fixed income or a target amount.The cost of these benefits may be payable in addition to the pension contributions (RSP Additional), be included in the pension contributions (RSP Deducted) or deducted from the pension fund (Q-Costed).
Premium or Contribution
The amount payable by the owner of the policy to the life assurance company at agreed regular intervals.
Premium Due Date
The date on which premiums are due to be paid.
R
Renewal Date
The anniversary of the date the policy started.
S
Scheme
This can refer to a pension scheme sponsored by an employer or one for a group such as a trade or profession.
Scheme Start Date
The date the contract, the premium and its benefits commence.
Single Premium
A non-regular injection of money into a pension fund.
T
Transfer Value
When a member leaves a pension scheme they may have an option to transfer the value of the pension fund to a new similar pension arrangement.
U
Unit
A unit is a measure used to identify the policyholder's individual share in a unit linked fund.
Unit Linked Funds
Policyholders' premiums are pooled together by an insurance company and invested by a fund manager to gain the benefit of being a single large investor. Unit funds invest in assets such as company shares (equities) and government and fixed interest securities (gilts and bonds). These funds are valued at regular intervals. The value of the fund may rise or fall, in line with the underlying investments. This usually means that the fund value is not guaranteed at any stage. The total value of the assets in the fund is divided among the policyholders by way of allocating individual units to each policyholder depending on their contribution to the fund and the growth earned on that contribution.
Unit Price
The unit price is calculated by dividing the overall value of the fund at a specific point in time by the number of units in the fund at that time.