Career average scheme

An alternative term for an average earnings scheme.

Cash option

An alternative term for commutation.

Certificate of existence

A document confirming that a person in receipt of a pension is still alive.

Closed scheme

A pension scheme that does not accept new members.

Commutation (sometimes known as "cash option")

The replacement of a series of future pension payments by an immediate lump sum. The exchange of pension for immediate cash is regulated by Revenue.

Commutation factors

The mathematical factors used by the trustees to determine the amount of pension which needs to be given up in order to provide a given lump sum benefit.

Compulsory purchase annuity

An annuity that must be purchased on retirement for a member of an insured pension scheme or for the holder of a personal retirement bond.

Concentration of investment

The placing of a significant portion of the assets of a pension scheme in any single investment or category of investment. This is subject to disclosure under the Pensions Act and may also impact the scheme's ability to meet the minimum funding standard under the Act.

Contingent benefits

Benefits payable from a pension scheme in the event of the death of the member during the period of employment (or self-employment) to which the scheme relates.

Contribution holiday

A term used to describe a period under which employers' and/or members' contributions are suspended. This usually happens when the fund is in surplus.

Contributory earnings

The earnings on which contributions are calculated. See also "pensionable earnings".

Contributory occupational pension scheme

An occupational pension scheme to which employees are required to contribute (usually a fixed percentage of their pensionable pay) in order to meet part of the cost of the benefits.

Controlled funding

A funding plan which has regard for the liabilities of a defined benefit scheme as a whole, rather than for those of individual members.

Controlling director

A director who, together with his associates, owns or controls 20% or more of the ordinary shares of the employing company. Special restrictions apply to controlling directors who are members of approved schemes. See the Revenue Pensions Manual.

Co-ordination

A term used in the public sector to indicate that the benefits payable under the social welfare system are taken into account in the occupational pension scheme. Co-ordination is generally required as a matter of policy where social welfare retirement benefits are payable. However, the calculation of the gratuity payable on retirement or death is not normally affected by co-ordination.  See also "integration".

Corporate trustee

A company which acts as a trustee.

Cross border schemes

A scheme established in one EU member state, which authorises an employer to operate a cross-border scheme and to accept members and contributions from an employee located in another EU member state.

Custodian trustee

A trustee responsible for holding the assets of a trust, other trustees being responsible for the management of the trust including the investment decisions.