Early leaver

A person who ceases to be an active member of a pension scheme, other than on death, without becoming entitled to an immediate retirement benefit.

Early retirement

The retirement of a member, with immediate retirement benefit, before normal pensionable age. The benefit may be reduced because of early payment. See also "ill-health early retirement".

Earmarked contributions

In the context of the Family Law Acts, contributions paid by or for a person under a defined contribution scheme during a period specified by the court.

Earnings cap

Limit, currently €115,000 per annum, on earnings from all sources for the purpose of calculating allowable tax relief on personal contributions to all forms of pension arrangements, including PRSAs. Separate or simultaneous employments or self-employment no longer generate separate allowances.

Eligibility

The conditions which must be met for a person to be a member of a scheme or to receive a particular benefit. These may, for example, relate to age, service, status and type of employment.

Employee

A person of any age engaged under a contract of employment, i.e. a contract of service or apprenticeship expressed orally, in writing or implied.

Employer

The person or body with whom the member of a pension scheme has a contract of employment relevant to that scheme.

Endowment assurance policy

A policy which provides for a lump sum at a future maturity date or earlier on death.

Equal access

Identical entry conditions for men and women. The Pensions Act requires this.

Equal treatment

The principle requiring one sex to be treated no less favourably than the other, as embodied in EC Council Directive 86/378 and the Pensions Act (Part VII), which also requires equal treatment on grounds other than sex.

Escalation

A system whereby pensions in payment and/or preserved benefits are increased regularly at a fixed or variable percentage rate.  The percentage increase applied may be limited to the increase in a specified index.  Escalation may be promised and paid for in advance of, or may be granted on a discretionary basis after the pension has commenced.

Exchange of letters

A method of creating a pension scheme trust, in which a letter from the employer constitutes all or part of the documentation of an individual pension arrangement.  A copy of the letter is signed by the employee to acknowledge its terms.

Exempt approved scheme

An approved scheme which is established under irrevocable trusts, giving rise to the tax relief allowed for in the Finance Acts.

Exempt unit trust

A unit trust specifically designed for pension schemes and charities, which receives the same tax treatment as a directly invested pension scheme.

Ex-gratia benefit

A benefit provided by the employer which it is not legally required to provide.  Payment of such a benefit cannot be enforced by the member.