Glossary of pension terms

Valid request

The trigger which starts the process of selecting member trustees under the relevant regulations.

Valuation basis

A term commonly used by actuaries to mean the method used by them to value the assets and liabilities of the scheme and the actuarial assumptions which they use in this valuation.

Venture capital

Funds put up by investors to finance new or growing businesses.

Vested rights

This has different meanings for different people.

(a) For active members, benefits to which they would be unconditionally entitled on leaving service, which may or may not include statutory rights to a preserved benefit.

(b) For deferred pensioners who have already left the employment, their deferred/preserved benefit.

(c) For pensioners, the pension which they are receiving, including, where appropriate, the related benefits for spouses/civil partners and other beneficiaries.

Vesting period

This is the period of membership of an occupational pension scheme, which you must complete in order to be entitled to deferred benefits on leaving service.

Victimisation

Where the dismissal or otherwise adverse treatment of an employee by their employer occurs as a reaction to a complaint, or participation in a complaint by an employee in relation to a breach of the principle of equal pension treatment.

Volatility

The frequency and magnitude of price changes of assets.