Definitions are by scheme rules. In a final salary scheme it is not necessarily the salary in the last year of service. See PENSIONABLE EARNINGS.

The years of service used by an employer for calculating entitlement to pension benefits from an occupational pension scheme. Scheme rules define the eligible periods and types.

An independent trustee whose appointment is mandatory to are approval for a small self-administered scheme. The pensioneer is then not allowed to resign unless an immediate replacement is available.

People receiving a pension from an occupational pension scheme.

Pensioner members appointed as trustees.

The payment to the state by a private pension scheme when it ceases to be contracted out of a defined benefit scheme. It enables the state to provide the guaranteed minimum pension for scheme members (or pensioners over state pension age).

Scheme that pays compensation to members of occupational pension schemes when assets have fallen in value due to dishonesty or employer insolvency. The scheme is run by the Pensions Compensation Board under parliamentary jurisdiction. Compensation is funded by a levy on occupational pension schemes.

Occupational pension scheme not managed by the firm itself but either by an insurance company, which receives the premiums, invests them for the benefit of the fund, and pays out the pensions, or by external investment managers.

Formed in 1976 to promote professionalism amongst those involved with pension scheme management and consultancy. It sponsors the national vocational qualification (NVQ) in pensions administration and is generally concerned with maintaining high standards within the pensions industry.

Decides complaints and disputes about the way pension schemes are run (maladministration). Complaints on sales/marketing fall to the FSA. PO is an independent, impartial adjudicator whose decision binds all parties and can be appealed only on a point of law. PO does not become involved in a dispute between a member and his scheme until normal dispute resolution and OPAS involvement have been exhausted. (Visit www.pensionsombudsman.org.uk).