A

AA

The Annual Allowance is the maximum amount that can be paid or built up in a pension arrangement in any tax year before an additional tax charge is payable.

Actuary

A pensions professional who estimates the long-term cost of providing pensions and advises on any contributions needed to fund a pension scheme, taking into account inflation, interest rates, how long people live and other factors.

Additional State Pension

This was paid on top of the Basic State Pension under the old State Pension, before 6 April 2016. It was based on an individualís earnings between limits set by the Government each year.

AVCs

Additional Voluntary Contributions were additional contributions that you may have chosen to pay into the Yorkshire and Clydesdale Bank Pension Scheme while you were an active member of the Scheme. Your AVC savings pot can be used to provide additional income when you retire.

B

Basic State Pension (BSP)

The flat rate pension paid at State Pension age under the old arrangement to a single person who has paid enough National Insurance contributions during their working life.

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C

Capital Value

The total value of your pension benefits. In a defined contribution scheme, it is simply the value of your savings pot. In a defined benefit scheme, it's the annual pension you are due to receive at retirement multiplied by 20 plus any lump sum you receive.

Cash Equivalent Transfer Value (CETV)

This is the cash equivalent amount of your entitlement to pension benefits from the scheme. The scheme will pay this amount if you decide transfer your benefits to another registered pension scheme.

Corporate Trustee

A company that acts as the Trustee for a pension scheme and has a legal duty to safeguard membersí benefits.

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D

Defined Benefit (DB)

A type of pension scheme where you've earned a pension payable for life, based on how long you were in the scheme, your final pensionable salary and the pension scheme's accrual rate.

Defined Contribution (DC)

A type of pension scheme where you pay contributions from your salary to an individual pension savings pot. There are a number of ways you can access savings in a DC Scheme.

Deferred member

Either an employee or former employee of the Company who has not yet taken a pension from the Yorkshire and Clydesdale Bank Pension Scheme.

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G

Guaranteed Minimum Pension (GMP)

Guaranteed Minimum Pension, which is the minimum pension a contracted-out DB pension scheme must provide for service before 6 April 1997, as one of the conditions of contracting out of the Additional State Pension (also known as the State Second Pension (S2P) or State Earnings Related Pension Scheme (SERPS)).

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H

His Majesty's Revenue & Customs (HMRC)

Responsible for the registration of pension schemes and the taxation of contributions and benefits.

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L

Lifetime Allowance

The Lifetime Allowance, which is the maximum value of pension benefits (excluding any State Pension) which you can receive before you have to pay a tax charge.

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P

Pensionable Salary

The elements of your basic salary which are used to calculate your pension contributions, and which determine the value of your benefits in a DB pension scheme.

Pensionable Service

The service used to calculate your pension in a DB pension scheme.

Preserved Pension

The pension held by a Deferred Member, that is no longer being contributed to and is not yet in payment.

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R

Retired Member

A member of the Scheme who has started to receive their pension.

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S

Scheme Rules

A legally binding document detailing the pension benefits which must be provided to members of a pension scheme.

State Earnings Related Pension Scheme (SERPS)

The Additional State Pension scheme that ran from 6 April 1978 to 5 April 2002. It was replaced by the State Second Pension (S2P) on 6 April 2002.

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T

Trustee

The Trustee is a Board of Directors who are responsible for running the Scheme under the Corporate Trustee. They have a legal duty to safeguard the benefits you have earned.

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