Pensions can be confusing. This guide explains some of the more common terms you might come across.
Active member – someone who is still employed by the provider of their DB scheme and isn’t yet receiving any pension payments.
Bulk annuity (also referred to as ‘bulk purchase annuity’ or simply ‘BPA’) – a long-term insurance policy to secure the pension benefits of lots of members, including yours.
Deferred member – someone who has left the employer that provided their DB scheme and isn’t yet retired or receiving any pension payments.
Defined benefit (DB) pension scheme (also known as ‘final salary’ pension scheme or ‘career average’ pension scheme) – a private pension scheme, typically arranged by your employer/a workplace pension scheme, makes pension payments based on factors like salary and length of service.
Individual annuity policy (also known as a ‘defined benefit annuity policy’) – your personal insurance policy with us.
Pension scheme member – what you’re known as when you’re still part of a defined benefit pension scheme.
Policyholder – what you technically become when you move from a defined benefit scheme to a bulk purchase annuity (but at Just, we prefer to think of you as members).
Qualifying dependant – a member’s spouse, civil partner or financial dependant, who is entitled to future pension payments if the member dies.
Trustee – the person/s responsible for managing a defined benefit pension scheme.
