Benchmark

Target or measure against which performance will be judged - used to assess the performance of a fund or investment portfolio.

Beneficiary

A person who is entitled to benefits under a pension scheme or who will become entitled on the happening of a specified event (e.g. on the death of a member).

Benefit statement

A statement of the benefits payable in respect of an individual on the occurrence of specified events, e.g. death, retirement etc.

Benefit-in-kind

Benefit given other than in cash which forms part of remuneration; if taxed under Schedule E, it may be included for pension purposes under Revenue rules (but may or may not be included in pensionable pay by the scheme rules).

Bid-offer spread

In unit-linked investment contracts, the difference between the price at which units can be purchased (“Offer” price) and the price at which they can be sold back to the investment manager (“Bid” price) on any given day.

Board resolution

The directors or partners of the sponsoring employer can meet and pass a special Board resolution to establish a pension scheme under trust. The resolution must be minuted and the overall content of the eventual trust deed and rules must also be recorded.

Bond

Certificate of debt issued by a company, a government or other institution Bond holders are creditors of the issuer and interest is paid at the rate stated at the time of issue. The term “bond” is also used to describe a buy-out policy. See also "personal retirement bond".

Book reserve scheme

Unfunded pension scheme which is accounted by a provision in the employers accounts. Common in some European countries.

Bridging pension

An additional pension benefit paid between the date of retirement and some later date, when it will reduce or be discontinued. The most common type of bridging pension is paid in the interval between the date of retirement and the Social Welfare pension age, where Social Welfare benefits are taken into account in calculating the scheme pension, but members retire before these become payable.

Buy-out bond

The purchase by the trustees of a pension scheme of an insurance policy or bond in the name of a member or other beneficiaries following termination of service, retirement, or on winding-up of a scheme. The bond is bought in substitution of the members rights under the pension scheme. Under the Pensions Act, purchase of such a bond on leaving service may be at the option of the member or, in certain circumstances, at the option of the trustees.