Objective justification

It may be possible to justify the fixing of different levels of contribution under a defined contribution scheme by reference to a legitimate aim of the employer.  Legitimate employment policy, labour market and vocational training objectives are examples of legitimate aims specified in the Act.  Similarly, it is a defence to a claim of indirect discrimination to show that the rule complained of was implemented to achieve a legitimate aim of the employer, and that the rule is an appropriate and necessary way of achieving that aim.

Occupational benefit

Payments in the form of pensions, payable in respect of termination of service, retirement, old age, death, interruptions of service by reason of sickness or invalidity, accidents, injuries or diseases arising out of or in the course of a person's employment, unemployment or expenses incurred in connection with children or other dependants.

Occupational benefit scheme

This is formally defined in the Act as a scheme or arrangement for providing occupational benefits to employees and the self-employed.  This definition includes occupational pension schemes, personal pension plans and PRSAs, but also includes arrangements such as permanent health insurance.

Occupational pension scheme

A pension scheme set up by an employer to provide retirement and/or other benefits for employees. It is sometimes called a "company pension scheme".

Offset

An amount of salary which is disregarded under the rules of a scheme, to take account of a social welfare pension. Can also be applied to a deduction from the member's pension to take account of a social welfare pension. See also "integration".

One-member arrangement

A scheme which is established for one person only and that one person will always be the only member, and that member has discretion as to how the resources of the scheme are invested unless the scheme is subject to a pensions adjustment order, in which case it may also include the person(s) referred to in that order.

On-the-spot fines

Instead of prosecuting a breach of certain specified offences of the Pensions Act through the courts, the Pensions Authority may instead notify a person in writing that it is alleged that a summary offence has been committed and that if, within 21 days of the notice, the person has remedied the offence to the satisfaction of the Authority and paid the appropriate fine, the prosecution will not proceed. These are called “on-the-spot fines”.

Overlap

An arrangement under which a dependant's pension comes into immediate payment on the death of a pensioner, while a minimum guaranteed period of payment of the main pension is still running.

Overriding legislation

The application of statutory requirements to pension schemes by means of provisions which expressly override the scheme rules. All the provisions of the Pensions Act and its regulations are overriding legislation.