the requirements for making returns to the Financial Services Authority, commonly referred to as the regulatory return, to be found in the Interim Prudential Sourcebook for Insurers (see Integrated Prudential Sourcebook).

The rate (e.g. 1/60th) at which the pension benefit increases for each year of pensionable service in a defined benefit scheme. See ACCELERATED ACCRUAL.

A pensions term referring to the accounting practice whereby revenues and costs are recognised as they are earned or incurred, rather than when money is received or paid out.

Accumulated benefits in a pension scheme for a member in respect of his service up to a given time, whether vested or not. The calculation may take account of the member’s current or projected earnings. Allowance may also be made for revaluation and/or pension increases.

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US, MEDICAL: Amount of benefit in a pension plan that has accumulated on behalf of an individual plan participant at any particular time.

Major category of funding methods in which the actuarial liability for active members is based on pensionable service accrued up to the valuation date or to the end of the control period, as appropriate. The treatment of benefits not directly linked to pensionable service is not specified but left to actuarial judgement, subject to the need for consistency between successive valuations. The standard contribution rate is derived from the definition of the actuarial liability appropriate to the accrued benefits funding method selected. It is the rate sufficient, after taking into account the actuarial liability at the beginning of the control period, and the benefits expected to be paid during that period, to provide for the actuarial liability at the end of the control period.

The benefits an occupational pension scheme member has as of right. They include accrued benefits. The rights for an active member can be based on the scenario that he has left service or he could have the right to link benefits to future salary increases. Specific definitions of the term are set out in PSA93 for the purposes of preservation, contracting out and the Disclosure Regulations. PA95 contains a specific definition in relation to scheme amendments. See DISCLOSURE 1.

A type of state scheme premium payable in respect of a member when a defined benefit scheme ceases to be contracted out. In return the state scheme takes over the obligation to provide the member’s guaranteed minimum pension.

Total of a member’s pension scheme contributions plus investment earnings. In a money purchase scheme, the employer’s contributions plus investment earnings are added to give the overall figure.

1. The accumulation risk arises when a large number of individual risks are so situated, e.g. within a given location, that a single occurrence, such as a windstorm, may affect many or all of these risks. The occurrence may be defined in an hours clause. See ACCUMULATION CONTROL. 2. Life insurance term to reflect the increase in value and therefore subsequent benefits available under with profits policies as the life of the policy progresses and investment income accrues.

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US, MEDICAL: 1. Percentage added to insurance benefits given as a reward or incentive to the insured because of continuous renewal of the policy. This may be added as a provision in some health insurance policies. 2. Total number of services used by a patient under an insurance plan that limits costs or office visits.

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The concentration of similar risks in a particular area such that an insured event may result in several losses occurring at the same time.*******Percentage addition to Policy benefits as a reward to the insured for continuous renewal.