Unapproved scheme

An occupational pension scheme not designed to be approved by Revenue. Such schemes are not controlled by the Pensions Act.

Unfunded schemes

Schemes in the non-commercial sector, such as the civil service, local government, education and health services, are financed on a pay-as-you-go basis. This means that the cost of pensions is met from current exchequer expenditure in much the same way as the salaries and wages of employees. These schemes can operate in this way as the State is in a position to obtain the money it needs to pay pensions.

Uniform accrual

A principle applied to calculate a member's accrued benefits, in cases where the potential service of the member differs from the period required to “earn” maximum benefits under the scheme rules. Thus, if the scheme benefit was 30/45ths of salary and the member could serve 35 years, he/she would be deemed to have earned 1/35th of the maximum benefit in each year of service. This principle underlies preservation of benefits under the Pensions Act.

Unit linked investment

Arrangements whereby the contributions paid by the investor are used to purchase units, the price of which fluctuates according to the value of the underlying investment portfolio. See also "pooled funds".

Up-rating

This is the practice of increasing the value of a benefit or contribution so that it keeps pace with any changes made in the pensionable pay appropriate to the job which the person holds or held at a particular time. Up-rating can apply to deferred benefits, refunds of contributions which become repayable on re-entry to service and to marriage gratuities which are repaid on reinstatement to membership of the scheme.