Family Law (Divorce) Act

The Family Law (Divorce) Act 1996 - as well as facilitating the redistribution of property, including pensions, between parties to a divorce action, this Act contains the primary mechanism for the granting of decrees of divorce. In force from 27 February 1997.

Family Law Act

The Family Law Act 1995, which, among other things, enables the courts to allocate part of a member's pension entitlement under a scheme to the spouse who is not a member of the scheme in the course of judicial separation.  In force from 1 August 1996 and applies to foreign divorces as well as judicial separation.

Family status ground

Discrimination on the family status ground occurs where less favourable treatment is based on the fact that one person has family status and the other person does not.  A parent has family status to a person under the age of 18, or a parent or resident primary carer to a person over 18 with a disability needing continuing regular or frequent support.

FAS 87 and 88

US Financial Accounting Standards dealing with the treatment of pension costs in employers' accounts. FAS 88 applies when schemes are wound up or when benefits are settled on termination of employment.

Final pensionable earnings/final pensionable salary

The pensionable earnings, at or near retirement or leaving service, on which the pension is calculated. This may be fixed at a particular date or may be based on the average of a number of years.

Final remuneration

The term used by Revenue for the maximum amount of earnings which it will permit to be used for the purpose of calculating maximum approvable benefits. The permissible alternatives are set out fully in the Revenue Pensions Manual.

Final salary scheme

A defined benefit scheme whose benefits are calculated by reference to pay or salary at, or close to, retirement.

Financial adviser

A financial adviser is someone who is regulated by the Central Bank of Ireland to give advice to individual members of the public. Advisers can either be “tied” and only able to advise on products of the product producer or can be “independent” and able to advise on a range of providers and products. It is important when selecting an adviser that you understand how they are being paid for the advice that is being given and what impact any commission being paid will have on your pension or investments.

Financial Services (Pensions)

The unit of Revenue which supervises the benefit and contribution structure of pension schemes granted approval under the Taxes Consolidation Act, 1997 (previously the 1972 Finance Act).

Flexible benefits

A system of benefit provision in which employees are given a choice on the makeup of their total benefit package from an employer. Typically, under such a system, employees may choose how much of the money made available by the employer would be used for the provision of pensions, death benefits, disability health insurance, holidays, etc. Minimum limits may be laid down for certain benefits, either because they are specified by the scheme design or are made necessary by employment law or by Revenue practice.  Often called, simply, "Flex‟.

Fluctuating emoluments

Employee earnings not paid on a fixed basis, but additional to basic wage or salary. Includes bonuses, commissions, benefits-in-kind and share option gains.

Forfeiture of benefits

Termination or suspension of all or part of the benefits under an occupational pension scheme. Forbidden in relation to preserved benefits by the Pensions Act, it can still happen in public sector schemes which are exempted from Part III of the Act.

Forgoing

An agreement in writing whereby the employee forgoes part of his/her future earnings in return for a corresponding payment by the employer into a pension scheme.

Free cover

The maximum amount of death benefit which an insurance company covering a group of members for death benefits is prepared to insure for each individual, without production of evidence of health.

Frozen benefit

A deferred benefit which is not subject to revaluation.

Frozen scheme

A scheme which provides benefits only for members whose service has terminated; or a scheme where continuing service in employment does not entitle members to accrue new pension benefits, and to which no new members are admitted.

Funded schemes

Occupational pension schemes set up by most companies and by commercial semi-state bodies are usually financed by setting aside money in a trust fund, which is separate from the employers business, to finance the payment of pensions. Separating the schemes assets from the employers business should ensure that these assets will be available to pay members pensions, whether or not the employer stays in business.

Funding

'The provision in advance for future benefit liabilities by setting aside money in a trust, which is separate from the employer's business, to finance the payment of benefits when they arise.

Funding certificate

A certificate issued by the actuary under the funding standard provisions of the Pensions Act.

Funding level

The relationship, usually expressed as a percentage, between the actuarial value of a scheme's assets and its actuarial liability.

Funding method

The approach used by an actuary in an actuarial valuation. A variety of methods can be used, but whatever method is employed should be adequately described in the valuation report.

Funding plan

The agreed timing of contributions with the aim of meeting the cost of a given set of benefits in a defined benefit scheme.

Funding proposal

If a defined benefit scheme does not meet the funding standard set out by the Pensions Act, the scheme trustees must submit a funding proposal to the Pensions Authority explaining how they intend to rectify the scheme's funding.

Funding rate

The rate of which contributions are payable to support the liability for benefits. Often used as shorthand for recommended contribution rate.

Funding standard

The funding standard ensures that a defined benefit scheme has sufficient funds to secure the pension rights that members have built up should the scheme have to be wound up at any stage. To comply with the funding standard, a defined benefit scheme must be able to meet certain liabilities, as set down in the Pensions Act.