The Pensions Guide


Pensions Knowledgebase and Glossary

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De minimis limit If a pension pays less than this limit, the whole of the member's share of the pension fund can be taken as a one−off amount.
Death after retirement benefit If a member has this option, then their dependants will get some benefits from the scheme if the member dies after starting to get pension benefits.
Death benefit This may be paid to a member's dependants if the member dies. It may be a pension or a one−off payment. It could be death after retirement benefit or death in service benefit.
Death in service benefit If a member has this option, then their dependants will get some benefits from the scheme if the member dies before starting to get pension benefits.
Debtors The amounts owed to the pension scheme.
Declaration of trust The document which creates the pension scheme trust.
Deed of adherence A legal document which allows a new employer to take over the running of a pension scheme. The new employer has to agree to follow the scheme's rules.
Deed of appointment A legal document appointing a new pension scheme trustee.
Deferred annuity An annuity which will start to pay out at some time in the future.
Deferred annuity purchase This name is also used when a member retires, but chooses not to spend their share of the pension fund on an annuity straightaway.
Deferred member A member who has left a scheme, but will get benefits when they retire. These are called preserved benefits.
Deferred pension A pension which is taken later than the member's normal retirement date.
Deferred pensioner When someone stops being an active member of a pension scheme, the pension benefits they have earned become preserved benefits, and the member is now called a deferred pensioner.
They will get these benefits at a later date.
Deferred retirement When a person decides to retire and draw their pension late. It is sometimes called late retirement or postponed retirement.
Deficit An actuarial deficiency. Where the actuarial value of a scheme's assets is less than the actuarial liability. The actuarial deficiency is the difference between the two.
Defined benefit scheme Where the rules of the scheme decide how much pension the member will get. There are different ways of working out the size of the pension, but the member will know which system the scheme uses.
The most common type of defined benefit scheme is a final salary scheme.
Defined contribution scheme Where the size of the member's pension is not decided by the rules of the scheme.
The size of the member's pension will be affected by how much money is put into the pension fund for the member, how much the pension fund has grown, and what annuity rate is available when the member retires.
Definitive trust deed This document shows the rules of the pension scheme and what it provides in detail.
Dental care If you are receiving Pension Credit, you can receive free NHS dental treatment.
Department for Work and Pensions (DWP) The Department for Work and Pensions is responsible for a range of benefits and services for pensioners, people of working age and families.
It was previously known as the Department for Social Security.
Dependant Someone who is financially dependent on a member of the pension scheme (or on a pensioner of the scheme). The scheme rules will usually say what is meant by a dependant.
Dependant's pension option Allows a member to give up part of their pension so that it can be paid to their husband or wife or a dependant.
Derivative A general word used to describe special financial instruments such as options and futures contracts. Financial instruments are agreements to buy or sell something, under terms laid out in a contract.
Direct investment When the trustees of a self−administered scheme directly hold the scheme's investments.
Direct payment State Pensions and benefits are paid straight into the account you choose.
Disability Living Allowance If you are under the age of 65 with a disability and you need help looking after yourself, you may claim for this allowance. If you are 65 or over, you need to claim for Attendance Allowance instead.
Disclosure regulations The rules which pension scheme trustees have to follow when giving information about the scheme to members and official organisations.
Discontinuance When contributions to a scheme stop and the scheme is closed down or becomes inactive.
Discontinuance valuation An actuarial valuation which is done to work out what would happen if the pension scheme was stopped or closed down.
Discretionary approval When the Pension Schemes Office (PSO) agrees that an occupational pension scheme can be approved, even though it does not meet the usual rules.
Discretionary increase When the trustees give increases in pension benefits above those set out in the pension scheme rules.
Discretionary scheme A scheme where the employer chooses which employees are allowed to join. The contributions and benefits may also vary from one member to another.
Disqualification order An order made by the Occupational Pensions Regulatory Authority (OPRA). It means that a certain person is banned from being a trustee of any occupational pension scheme.
Drawdown facility When a member retires, but chooses not to buy an annuity straightaway. Until the member buys an annuity, they take an income from the scheme.
Driving licences If you're aged 70 or over, you can now apply to the Driving and Vehicle Licensing Agency to renew your licence free of change.

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