Final salary meaning

This Checklist offers an overview of the information an annual benefit statement must contain under regs 16, 16A and 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013, SI 2013/2734 (the Disclosure Regs 2013). It applies irrespective of whether the pension arrangement in question is a defined benefit scheme, a cash balance arrangement or any other money purchase set‑up. Benefit statements for benefits other than money purchase benefits Active, deferred and pension credit members who are entitled to benefits other than money purchase benefits (for example, final salary or career average benefits) may ask the trustees or managers of the scheme for a benefit statement once in every 12‑month period. The trustees must provide the statement as soon as practicable and, in any event, within two months of their request. The precise content of the annual benefit statement varies according to the member’s status, and the accompanying table identifies the information requirements for benefit statements for each relevant type of member...

Aon plc, the British‑American management consultancy, said it would ‘naturally’ give company directors more sway over a scheme if trustees of defined benefit plans were obliged to obtain the sponsor’s agreement to a new ‘statement of strategy’, as outlined by TPR earlier in March 2024. TPR also stated that managers of defined benefit retirement schemes must lodge the strategy alongside their routine valuation documents from 22 September 2024. A defined benefit pension delivers a guaranteed income each year for life, determined by a worker’s final or average salary...

In this issue: The Pensions Regulator Pension Protection Fund Pension Schemes Bill The pensions tax regime Pensions accounting Daily and weekly news alerts Dates for your diary Trackers The Pensions Regulator TPR publishes 2025 DC landscape report highlighting consolidation trends The Pensions Regulator (TPR) has released its 2025 overview of the UK occupational defined contribution (DC) market, confirming a continued move towards fewer, larger schemes and urging trustees, particularly those of smaller arrangements, to test value for savers and consolidate where it is lacking. The analysis shows DC scheme numbers fell by 15% to 790 in 2025, chiefly as schemes with fewer than 5,000 members left the market. Over the period, total assets rose 22% from £205bn to £249bn and memberships increased by 7%, reflecting consolidation. Master trusts now dominate, holding 30.1 million memberships (92%) and £208bn of assets (83%). TPR stressed that larger schemes are typically better positioned to deliver stronger investment performance and...

In this issue: The Pensions Regulator Pensions dashboards Taxation Members and benefits Funding, surplus and investment Public sector pensions Dates for your diary Trackers The Pensions Regulator TPR announces full benefits secured for Box Clever pension members after ITV case The Pensions Regulator (TPR) confirms it has secured full benefits for all 2,800 members of the Box Clever Group Pension Scheme, bringing its long-running case against ITV to a close. Individuals who had received payments at Pension Protection Fund (PPF) levels since 2014 have now moved to the ITV Pension Scheme and will receive full scheme entitlement plus back payments. TPR has also released a regulatory intervention report setting out how, for more than a decade, it pursued ITV, deploying its Financial Support Direction (FSD) powers to require the broadcaster to underpin the scheme following the 2011 collapse of Box Clever—a joint venture between Granada (now ITV) and Thorn (now Carmelite). After ITV’s legal challenges,...

What is the PCSPS? Until 30 September 2002, the Principal Civil Service Pension Scheme (PCSPS) was the only pension option for the civil service. From 1 October 2002, four distinct sections were introduced within the PCSPS: Classic (the 1972 Section), Classic Plus (a blend of Classic and Premium), Premium (the 2002 Section) and Nuvos (the 2007 Section). The first three operate on a final salary basis, whereas Nuvos is a career-average section. For further details on how these sections were established, see below. Subsequently, on 1 April 2015, a new arrangement, the Civil Service Pension scheme (CSP) alpha, was created to provide benefits on a career average basis. When alpha was brought in, the government acted to close the PCSPS to future accrual, subject to: the retention of a final salary link in the PCSPS for active members, meaning benefits earned in the PCSPS are calculated using final salary at the point of leaving the civil service rather than when active PCSPS membership ended... ...

ARCHIVED: This archived Practice Note summarises the Fee-Paid Judicial Pension Scheme (FPJPS), introduced by the Judicial Pensions (Fee-Paid Judges) Regulations 2017, SI 2017/522, arising from O’Brien v Ministry of Justice. It covers the statutory framework, governance, eligibility, contributions and benefit design. This note is not maintained... Statutory framework The Judicial Pension Scheme includes several arrangements: Judicial Pension Scheme 1981 (JPS 1981). Salaried judges appointed before 31 March 1995 will usually be members of this unfunded final salary scheme, created under JPA 1981. Judicial Pension Scheme 1993 (JPS 1993 or JUPRA). Salaried judges appointed between 31 March 1995 and 31 March 2015 will generally be members of this unfunded final salary scheme, established under JPRA 1993. Note that: There is an entitlement to elect to move from JPS 1981 to JUPRA at any point up to six months after retirement. For more information, see Eligibility, below. The Ministry of Justice began an options exercise in October 2023 to...

The UK’s choice to exit the European Union has made a comprehensive reassessment of the country’s immigration framework necessary. On 18 September 2018, the Migration Advisory Committee (MAC) released its final report on European Economic Area (EEA) migration in the UK, designed to provide an evidence base for shaping a new migration system to operate after the end of the implementation period from 1 January 2021. The report sets out multiple conclusions on the effects of EEA migration to the UK, together with a series of proposals which, if taken forward, would have a significant bearing on the way EEA nationals are permitted to participate in the UK labour market once Brexit has taken effect. However, the document does not tackle whether EEA nationals ought to be treated differently within the family migration system, observing only that there could be large effects which should be taken into account. The key findings The report considered a vast body of evidence on the impact of migration from the EEA...

In the Employment Tribunals Case number: [ Insert case number ] Between: [ Insert name of claimant ] (Claimant) and [ Insert name of respondent ] (Respondent) Claimant's schedule of loss 1. Details Net basic pay per week (after deductions): £[ Insert amount ] Respondent’s yearly pension contributions/annual pension entitlement: [ [ Insert amount, e.g. £x ] OR [ Insert details of pension scheme, e.g. 1/80 final salary scheme with related lump sum ] ] Yearly value of bonus/other employment perks: £[ Insert amount ] Notice period under the contract: [ Insert period, e.g. x weeks or x months ] Claimant’s date of birth: [ Insert date ] Date employment ended: [ [ Insert date ] ] Age at termination: [ [ Insert age ] ] 2. ...

1 Introduction 1.1 This document explains the Company’s approach to sabbaticals, which typically run from [ insert number, eg two ] to [ insert number, eg six ] months. While you are on sabbatical, your employment continues, but entitlement to salary and [ certain ] other benefits is suspended. [ If you would prefer a longer career break, please refer to the Company’s career breaks policy, available from the [ HR department ]. ] 1.2 This policy applies solely to employees. It does not cover agency workers, consultants [ , contractors ] , volunteers [ , interns ] or casual workers. 1.3 [ This policy has been [ agreed OR put in place following consultation ] with [ [ enter name of relevant trade union(s) ] OR [ enter name of works council ] OR [ enter name of staff association ] ] . ] 1.4 This policy is not part of any contract of employment and the Company may revise it at any...