Scheme

Scheme means an occupational benefit scheme.

Scheme year

A period selected by the trustees of a scheme for purposes of the annual report and accounts. It may be any year beginning on (a) a date specified in the scheme documents; (b) 1 January; (c) such other date as may be agreed between the trustees and the Pensions Authority. It can be more than a year in certain circumstances, but can never exceed 23 months.

Section 50 order

An instruction given to the trustees of a scheme by the Pensions Authority, pursuant to Section 50 of the Pensions Act, to reduce the promised benefits under the scheme so that the funding standard can be met.

Segregated fund

Scheme assets invested by an external investment manager, independently of other funds under its control. Often used to indicate an individual portfolio of stocks and shares in contrast to a pooled fund.

Self-administered scheme

A pension scheme where the assets are directly invested in stock markets, etc. They may be managed by an in-house manager or an external investment manager. The term is not used to indicate the method by which benefits and contributions are administered, but is now almost exclusively used to refer to the way in which the investments are managed.

Self-investment

The investment of the schemes assets in the business of the employer, or that of an associated employer, or loans made to such bodies out of the pension schemes assets. Regulated under both disclosure and minimum funding standard provisions of the Pensions Act.

Sexual orientation grounds

Discrimination by reference to sexual orientation is discrimination on the sexual orientation ground. Sexual orientation means heterosexual, homosexual or bisexual orientation.

Short service gratuity

A gratuity paid to a person on leaving service, where the length of pensionable service is insufficient to qualify the individual for a preserved benefit.

Small scheme

A scheme with less than 100 active and deferred members (not including pensioners).

Small self-administered scheme

A self-administered scheme with 12 members or less or a scheme designed primarily for 20% Directors.  Special conditions attach to the approval of these schemes as set out in the Revenue Pensions Manual including the requirement to appoint a Revenue approved pensioneer trustee.

Socially responsible investment

Socially responsible investing, also known as sustainable, socially-conscious, or ethical investing, describes an investment strategy which seeks to maximise both financial return and social good. In general, socially responsible investors favour corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Some (but not all) avoid businesses involved in alcohol, tobacco, gambling, weapons, and/or the military.

Sovereign annuity

An annuity linked to sovereign bonds issued by Member States of the European Union.  The annuity payments may be reduced if underlying reference sovereign bonds default.

Special contribution

Any employer or employee contribution not regarded by Revenue as an ordinary annual contribution.

Spouses’ & children's pension scheme

A scheme usually separate from the main superannuation scheme in a public sector body, designed to supplement the superannuation scheme and to provide only pensions payable to spouses and children of deceased members. The pensions are payable on death before, or after, retirement. Such schemes are almost always contributory. When these schemes were first introduced, entry was voluntary but became compulsory for subsequent entrants to service.

Standard arrangement

One of the available methods of choosing member trustees under the Pensions Act regulations. It involves an election under the proportional representation system. See also "alternative arrangement".

Standard PRSA

A Standard PRSA can only invest in pooled funds except for temporary cash holdings. There is a maximum charge of 5% on each contribution you pay and a maximum 1% annual fund management charge, based on your fund value.

State pension age

The age from which pensions are normally payable by the social welfare scheme, currently, 66 (old age pension) for both men and women. This is increasing to age 67 from 2021 and age 68 from 2028.

Statement of investment policy principles

A written statement prepared at least every three years by the trustees that includes:

• the investment objectives of the trustees
• the investment risk measurement methods
• the risk management processes to be used
• the strategic asset allocation

Statement of reasonable projection

A statement predicting the likely future worth of a pension, which is based on assumptions relating to future contributions and investment returns and the cost of buying an annuity when a member retires.

Statutory scheme

A scheme whose operation is governed either by an Act of the Oireachtas or by regulations made under a statutory instrument in pursuance of such an Act.

Stock lending

A process by which stock is released to a third party for a fixed or an open period, in return for collateral and a fee for doing so. Normally a short-term transaction.

Stock selection

The continuous process of selecting which stocks are to be included in a portfolio.

Substitution option

A facility offered by an insurance company that insures the death benefits under a scheme, whereby a member leaving the scheme can effect a life policy without evidence of health. Whereas a continuation option would allow the member to continue the type of insurance used in the scheme, the substitution option requires him to take out a different type of policy (say, endowment or whole-of-life, instead of term assurance). Such options are now becoming less common.

Superannuation scheme

A term often used in the public service to describe an occupational pension scheme available to civil and public servants.

Supplementary scheme

A scheme to provide benefits over and above the benefits given under another scheme. Also called a "top hat scheme" or "top-up scheme".

Surplus

In a defined benefit scheme, any excess of the value of a scheme's assets over the value of its liabilities as calculated by the actuary of the scheme.

Surrender value

In an insurance contract, the available value of the benefits being funded, when the contract is terminated before its projected maturity date.