Target benefit scheme

A form of defined contribution scheme which aims for, but does not guarantee, a particular level of benefit. Commonly, contributions paid to such schemes are reviewed at regular intervals and adjusted to take account of factors such as pay increases and investment returns in the period between reviews.

Temporary annuity

An annuity payable for a fixed term or until earlier death. Also called a "term annuity".

Temporary cash holdings

Short-term deposits that provide a secure income.

Term assurance policy

A policy which provides a lump sum on death before a fixed future date. Such policies are frequently used for the provision of lump sum benefits payable on death in service.

The Pensions Authority

The Pensions Authority is a statutory body set up under the Pensions Act, 1990. The Authority regulates:

• occupational pension schemes
• trust RACs
• Personal Retirement Savings Accounts in Ireland.

This is done as part of the statutory role to monitor and supervise the operation of the Pensions Act. The Authority also protects the interests of pension scheme members and encourages pension provision. The Authority provides advice to the Minister for Social Protection on pension matters generally.

Time weighted return (also known as "money weighted return")

A relative measure of the rate of return earned by assets, independent of the timing of cash flows in and out of the fund.

Top hat scheme (also known as a "top-up scheme")

A scheme designed to provide benefits in excess of those provided by an employer's main pension scheme. Membership of such schemes is usually confined to senior executives or directors.

Transfer network

There are two networks in the public service under which the pensionable service given in participating bodies can be transferred in full to any other participating body. The two networks involved are the public service transfer network (1979) and the local government (transfer of service) scheme 1984. Bodies wishing to be designated for the purpose of transfer under both networks must apply separately to the appropriate bodies – the Department of Finance and the Department of Housing, Planning, Community and Local Government respectively.

Transfer payment

A payment from one pension scheme to another, or to an insurance company to purchase a buy-out bond or PRSA, in lieu of the benefits which have accrued to the member under the scheme.

Transfer value

If you leave an occupational pension scheme with entitlement to deferred benefit, then you may be entitled to elect to transfer your benefits to either a new employers scheme, to a personal retirement bond, or to a PRSA (only possible if less than 15 years' service completed). In the case of a defined benefit scheme, the transfer value represents the actuarial value at the date of transfer of any pensions payable to your dependants in the event of your death. In the case of a defined contribution scheme, the transfer value represents the accumulated value at the date of transfer of the employer and employee contributions.

Traveller community ground

Discrimination by reference to membership of the traveller community is discrimination on the traveller community ground. Traveller community means the community of people commonly so called who are identified by both themselves and others as people with a shared history, culture and traditions including historically a nomadic way of life on the island of Ireland.

Trivial pension

A pension which is so small that it can be subject to full commutation without prejudicing the approval of the scheme by Revenue. The present triviality limit is €330 per annum.

Trust

An arrangement under which a person or a group of people (trustees) hold and look after property on behalf of others. In the case of a pension scheme, the assets are held by the pension scheme trustees for the benefit of the members of the pension scheme and their dependants, and for the purpose of providing income in retirement.

Trust deed

The legal document, executed in the form of a deed, which establishes, regulates or amends a trust.

Trust deed and rules

Occupational pension schemes are set up under trust. The trust deed and rules governs how the scheme is managed and sets out how the benefits are determined and to whom they are payable.

Trust fund

In a company pension scheme the trust fund is the monies and assets held by the trustees, subject to the trusts of the scheme.

Trust law

Trust law comprises a number of statutory provisions dating back to the Trustee Act, 1893, and principles of equity which have evolved over many years in cases decided in the courts.

Trust RAC

A trust RAC is a scheme established under trust and approved by Revenue under Section 784(4) or Section 785(5), Chapter 2, Part 30 of the Taxes Consolidation Act, 1997.

Trustee

An individual or a company which alone or jointly becomes the legal owner of assets to be administered for the benefit of someone else (the beneficiaries), in accordance with the provisions of the document creating the trust and the provisions of trust law generally and the Pensions Act.

Twenty per cent (20%) director

A proprietary director who, with other specified connected persons, owns or controls more than 20% of the voting shares of the employer or its parent. The benefits that can be provided to 20% directors are somewhat restricted by Revenue.