An arrangement that allows employees to choose their own employee benefit structure, tailoring it according to their personal needs and preferences.
A non-profit-making mutual company registered under the Friendly Society Acts (1896-1955), offering personal assurance and insurance benefits.
A funded pension scheme is a retirement plan that pays benefits to retirees from a fund that is actively invested in securities. The returns generated by this fund are distributed as pensions to its members.
Normal cost represents the portion of the economic cost of a participant's anticipated pension benefits allocated to the current plan year, usually distinct from accounting accrual cost or the cash outlay required in that year.
The earliest age at which an employee can retire without a penalty reduction in pension benefits, typically after meeting minimum age and service requirements. Historically, set at 65 years but varies by pension plans.
A fund set up by a corporation, labor union, governmental entity, or other organization to pay the pension benefits of retired workers. Pension funds invest billions of dollars annually in the stock and bond markets, playing a significant role in the financial markets. Earnings on the investment portfolios of pension funds are tax-exempt.
The UK regulatory body responsible for protecting the benefits of those in work-based pension schemes; this includes all occupational schemes and any other schemes in which payments are made through the employer.
