Splitting of pension benefits between a divorced couple means ‘a clean break’ instead of remaining financially linked until retirement age as happens with earmarking. The ex-spouse is entitled to a pension credit that remains in the member’s current scheme or is transferred to a separate pension arrangement; most pension schemes insist upon the latter. The split means each can decide, within IR limits, when to take their pensions. but the ex-spouse is subject to the member’s chosen retirement date. The original term pension splitting now called pension sharing.

Transfer of the cash value from one approved pension scheme to another. A transfer payment is made to the member’s receiving scheme.

1. See NET RELEVANT EARNINGS. 2. Pensionable earnings/salary are the earnings on which pension scheme benefits and contributions are calculated as defined in the scheme rules. Normally it refers to total PAYE earnings from the employer for the relevant tax year and therefore includes bonuses, overtime, commissions and benefits in kind. Some final salary schemes may restrict ‘pensionable earnings’ to the member’s basic salary; definitions vary so full PAYE (P60) earnings are not necessarily the scheme’s pensionable earnings.

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).