Large scheme

A scheme with 100 or more active and deferred members.

Late retirement

The retirement of a member, with immediate retirement benefit, after normal retirement age. The benefit may be increased because of later payment.

Letters of exchange

A method of setting up a pension scheme for a single employee. The letter itself must include all the rules and powers usually contained in a trust deed and rules and must make reference to the irrevocable nature of the pension scheme in order to receive Revenue approval.

Liabilities

The obligations of a scheme to pay amounts of money either immediately or in the future. Liabilities whose payment is dependent on unpredictable future events (such as the death of a member) are called “contingent liabilities”.

Life assurance scheme

A scheme which provides only a benefit payable on the death of a member whilst in service.

Lifestyle investments

An asset allocation strategy used mainly in defined contribution schemes, in which members investments are adjusted depending on age and term to retirement. Typically, assets are invested in equities for younger members and systematically switched.

Long service benefit

Pension benefits payable at or after the normal pensionable age (NPA), assuming that you remain in relevant employment until the NPA. Long service benefit may take the form of regular pension payments and/or a lump sum. It also includes any benefits payable on death after the NPA to your spouse or dependants. These benefits may be a separate pension or, for example, a guaranteed payment of your pension for a set period after your death.