Declaration of trust

The type of trust document used when the employer is also intending to act as sole trustee but the actual content is comparable with the trust deed and rules. This type of document is commonly used when the assets of the pension scheme are totally invested and administered by an insurance company.

Deed of adherence

An additional trust document enabling a new employer to participate in an existing scheme.

Deed of appointment

A trust document by which a trustee is appointed.

Default investment strategy

An automatic investment strategy required by law to be applied under a PRSA contract unless the contributor indicates otherwise. The default investment strategy for each individual PRSA product is based on general good investment practice in saving for retirement and approved by the PRSA actuary. Although it is not a risk-free investment, it is designed to reduce the level of risk of the investments. Trustees of a defined contribution scheme may specify a particular strategy as a default if they are offering members a choice of alternative strategies.

Deferred annuity

An annuity which commences from a future date.

Deferred benefit

Any pension benefit, payment of which is delayed, e.g. until a person reaches normal pensionable age. Most often used to refer to benefits which accrue to a scheme member on leaving service.

Deferred member

A person entitled to a pension payment at a future date. Normally this would be an early leaver but the term is sometimes used to describe someone whose retirement is being postponed.

Deferred pensioner

A person entitled to a pension payment at a future date. Normally this would be an early leaver but the term can also be used to describe someone whose retirement has been postponed.

Deferred retirement

Another term for when the normal date of retirement is postponed.

Deficit

In a defined benefit scheme, any excess of the value of a scheme's liabilities over the value of its assets as calculated by the actuary of the scheme.

Defined benefit scheme (also known as “final salary scheme")

Defined benefit schemes provide members with retirement and death benefits based on formulae set out in the rules of the scheme. Benefits are often based on a members' salary close to retirement and on his or her pensionable service. For this reason these schemes are sometimes known as “final salary” schemes.

Defined contribution element of a defined benefit scheme

Members of defined benefit schemes can sometimes have their contributions or transfers treated as though they had been made under a defined contribution scheme.

Defined contribution scheme (also known as "money purchase plan")

Provides a pension based on the accumulated value of contributions paid to a pension scheme and the investment returns earned on those contributions.

Definitive trust deed

The detailed trust deed governing a pension scheme which contains details of all the trustees powers. It is usually accompanied by the rules of the scheme.

Dependant

A person who depends financially on a scheme member or pensioner. Children are regarded as dependants until they reach the age of 18 or leave full-time education or vocational training. A spouse is always regarded as a dependant.

Derivatives

Generic term for financial instruments used to manage investment portfolios, such as financial futures and traded options.

Designated benefit

The part of a member's retirement benefit which is allocated for payment to his/her dependent spouse or children under a pension adjustment order.

Determination

1.  Provision is made, under the Pensions Act, 1990, for the Pensions Authority to issue formal determinations in respect of certain questions specified in the Act.

2.  Decision of the trustees or other relevant person in an internal disputes resolution procedure.

3.  Final and binding ruling of the Pensions Ombudsman in a complaint or dispute, subject to appeal to the High Court.

Directly invested scheme

A scheme whose assets are not invested exclusively in certain named categories of investment, such as insurance policies, cash or unit funds. Such schemes become subject to the member trustee regulations if they have more than 12 active members.

Disability benefit

A benefit payable to an employee who is unable to work for medical reasons. This may be paid from a pension scheme as an ill-health early retirement benefit or it may be payable by the employer either directly or under the terms of an insurance policy or income continuance plan (which are not part of the pension scheme). A disability benefit can also arise under a voluntary disability insurance scheme, paid for in full by its members. Not to be confused with social welfare disability benefit.

Disability ground

Discrimination by reference to disability is discrimination on the disability ground.  Disability means total or partial absence of a person's bodily or mental functions, including the absence of a part of a person's body, the presence in the body of organisms causing or likely to cause chronic disease or illness, the malfunction, malformation or disfigurement of a part of a person's body, a condition or malfunction which results in a person learning differently from a person without the condition or malfunction, or a condition illness or disease which affects a person's thought processes, perception of reality, emotions or judgement or which results in disturbed behaviour.  Disability includes a disability which exists at present, or which previously existed but no longer exists, or which may exist in the future, or which may be imputed to a person.

Disclosure

Disclosure means the giving out of information, either voluntarily or to be in compliance with legal regulations or workplace rules.

Disclosure of information regulations

Regulations issued under the Pensions Act requiring specific information about pension schemes and their benefits to be disclosed to interested parties.

Discontinuance

Cessation of contribution payments to a scheme, leading to its becoming paid up, or with a view to its winding-up.

Discontinuance valuation

Actuarial valuation conducted on the basis that the scheme is to be discontinued.

Discretionary increase

An increase in benefits which is awarded on a discretionary basis, as against one to which the member is entitled under the rules. Can be ad-hoc or regular in nature.

Discretionary powers

Powers conferred on the trustees or on the employer by the trust deed and rules of a pension scheme whereby issues (for example, the destination of death benefits) can be determined at their discretion.

Discrimination

Less favourable treatment of one person as against another in a comparable situation on a discriminatory ground regarding access to or membership of an occupational benefit scheme. Discrimination includes the issue of an instruction to discriminate.

Discriminatory grounds

Gender, family status, marital status, sexual orientation, religion, age, disability, race and traveller community membership are the discriminatory grounds. Discrimination on a discriminatory ground contrary to the principle of equal pension treatment is prohibited under Part VII of the Pensions Act.

Dividend withholding tax

Tax deducted from overseas investment income. In general, dividends paid and other distributions made by Irish resident companies are liable to a dividend withholding tax (DWT) at the standard rate. This tax may be reclaimable.