Schemes under Opra investigation as they are tainted with dishonesty. Promoters advertise that they are able to turn an individual’s pension fund into an immediate tax-free cash. They often use offshore facilities, invent a fictitious employer’s identity to secure a transfer from the individual’s pension scheme and take 20-30 per cent of the fund in the process.

Interest-only mortgage where interest payments run parallel with payments into a personal pension fund. The capital is repaid out of the tax-free cash option available at retirement, usually permitted between ages 50 and 75, which period is taken into account when fixing the mortgage term.

A UK protection scheme operative from 2005 for defined benefit schemes and hybrid schemes whose employers become insolvent leaving the pension scheme unable to pay its liabilities. Pensioners will be guaranteed 100% of their pensions and non-pensioner members will be guaranteed 90% of their accrued pensions. PPF is funded by a levy on all relevant private sector schemes. See MINIMUM FUNDING REQUIREMENT.

The application to the preserved benefits of early leavers of indexation, escalation or the award of discretionary increases. PSA93 imposes a minimum level of revaluation in the calculation of guaranteed minimum pension and of other preserved benefits.

The Pension Transfer and Opt Out Review instituted by the Securities and Investment Board (now replaced by the FSA) in 1994 and now an s.404 scheme.

A means by which an individual can make pension provision. This may be either collective or individual and with or without the involvement (by means of contributions or otherwise) from the individual’s employer. Technically, the term is used to refer to a personal pension scheme or a free standing additional voluntary contributions scheme that has been approved by the Inland Revenue. The term company pension scheme is often used to describe occupational pension schemes.

Rules that set out how the accounts of an occupational pension scheme must be calculated and written.

Many of its regulations were brought into force in 1997, covering aspects of occupational and personal pension schemes.

A part of Opra, PSR lists the occupational schemes covered by Opra and helps members trace schemes with which they have lost touch. It also enables Opra to check that every scheme has paid its levy.

Enables divorcing couples to share their pensions following a court order at the time of the divorce. The arrangement will reduce the value of the member’s pension rights by a specified percentage (the pension debit) and an equivalent amount pension credit will be transferred to the ex-spouse. Pension sharing does not apply to the basic state pension, unmarried couples or to separated couples.