Rate of return

The percentage change in the value of an investment over a period, taking into account the income from it and the change in its market value, often expressed as an equivalent annual rate. See also "time weighted return", "money weighted return" and "real rate of return".

Real rate of return

The difference between the rate of return and a selected measure of inflation (often taken as CPI) over a period.

Reckonable service

A term defined in the Pensions Act. It is the period of a person's scheme membership, not necessarily the whole period of employment, and excluding any time when covered for death benefits only.

Recommended contribution rate

The contribution rate recommended by the actuary as being necessary to support the benefit promises made under the scheme.

Registered administrator

Trustees of every scheme (including large trust RAC schemes) must appoint a registered administrator to provide various services to the scheme known as "core administration functions". The "core administration functions" are the preparation of annual reports and annual benefit statements for the trustees, the maintenance of sufficient and accurate records of members and their entitlements to discharge the above functions and the submission of Annual Scheme Information (ASI) to the Pensions Authority.

Relevant earnings

Relevant earnings are broadly defined as income from a trade or profession or from an office or employment other than a pensionable office or employment.

Relevant employment

Any employment where you are making contributions to a pension scheme.

Relevant percentage

The proportion of the member spouse's retirement benefits earned during the relevant period, as specified by the Court, which must be paid to the dependent spouse or children under a pension adjustment order.

Relevant period

The period during which the member spouse's retirement benefits were earned, as specified by the court, which must be taken into account in determining the designated benefit.

Relevant person

In relation to any scheme, for the purposes of the rules on whistle-blowing, relevant persons are the trustees, actuary, auditor, administrator, insurer, investment manager and anyone employed by such persons. Legal advisers are excluded.

For the purposes of the Pensions Ombudsman regulations, the relevant person in relation to a scheme is the trustee/s of the scheme; or the Minister, in a public authority scheme; and, in relation to a PRSA, the PRSA provider.

Religion ground

Discrimination by reference to religious belief is discrimination on the religion ground. Religious belief includes religious background or outlook.

Reporting, compulsory

The Pensions Act requires that certain relevant persons providing services to a scheme or PRSA should report to the Pensions Authority any material misappropriation or fraudulent conversion of the assets of a scheme or PRSA. There are penalties for failure to report as required. This process is also known as “whistle-blowing”.

Reporting, voluntary

The facility open to anyone to report to the Pensions Authority on any matter concerning the state and conduct of a scheme or a PRSA. Anyone who does so in good faith is protected by the Pensions Act against legal action for defamation.

Retained benefits

A term used by Revenue to denote retirement or death benefits in respect of an employee’s earlier service with a former employer or an earlier period of self-employment. These may have to be taken into account in computing maximum approvable benefits.

Retirement Annuity Contract (RAC)

An individual pension policy which can only be effected by individuals who are in non-pensionable employment or who have taxable earnings from a self-employed trade or profession. Also known as "personal pension plans".

Retirement benefits

This means any payment arising under a pension scheme, payable to the member spouse or to others, at and following retirement.

Revaluation

The preserved benefit which is payable to a member from a defined benefit scheme will normally be revalued at the end of every year, starting with the calendar year before the benefits become payable. Revaluation helps to maintain the purchasing power of a member's preserved benefit until he or she reaches retirement. The rate of revaluation for a full year will be either 4% or the increase in the Consumer Price Index if it is less than 4% in that year.

Revenue

The organisation charged by Government with the collection of tax revenues and which, through Financial Services (Pensions), monitors the operation of pension schemes which are granted tax approval.

Revenue limits

Revenue restrict either the amount of benefits ultimately payable to an individual and/or the contributions payable by or in respect of an individual.

Risk

Any threat to the accumulation of benefits or the solvency of a pension fund. Can often arise from the variability of investment returns. Investments with a greater degree of risk built in must offer higher returns to attract investors.

Risk benefits

Benefits payable in the event of death or disability, which are not pre-funded. These risks are often insured.

Risk premium

The extra yield of an investment over the 'risk-free' rate, demanded by investors to compensate them for taking the higher risk.

Rules

The detailed provisions of a pension scheme, normally set out in a formal way and usually given authority by a trust deed.