Glossary of pension terms

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Net pensionable pay

Pay on which retirement benefits are calculated in public service pension schemes. It means pensionable remuneration less twice the annual rate of the State Pension (Contributory) payable to a person with no dependants, usually calculated on the last day of service. It is called net pensionable remuneration in the Single Public Service Pension Scheme. See also ‘co-ordination’.

Net relevant earnings

These are broadly defined as earnings from a trade or professional employment, less certain allowable expenses.

Nomination

The naming by a member of a person or persons to whom they wish any death benefit, payable from a pension scheme, to be paid in the event of their death. Also called a ‘wishes letter’ or ‘expression of wishes’. Such a letter or expression of wishes cannot bind the trustees, but trustees would normally try to give effect to the deceased member’s wishes.

Non-contributory scheme

A pension scheme which does not require contributions from active members, i.e., the employer is liable for all contributions needed to support the scheme.

Non-member civil partner

In the context of a pension adjustment order made under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act, 2010, the civil partner who is not a member of the pension scheme or arrangement from which the order is being sought.

Non-member qualified cohabitant

In the context of a pension adjustment order made under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act, 2010, the qualified cohabitant who is not a member of the pension scheme or arrangement from which the order is being sought.

Non-member spouse

In the context of a pension adjustment order made under the Family Law Act, 1995 (for judicial separation) or the Family Law (Divorce) Act, 1996, the spouse who is not a member of the pension scheme or arrangement from which the order is being sought.

Non-pensionable employment

Employment in which an individual has no right to benefits from an occupational pension scheme other than lump sums and dependants benefits payable on death in service.

Non-standard PRSA

A personal retirement savings account (PRSA) that has no limit on charges and where investments are not limited to pooled funds.

Normal pensionable age (NPA)

Normal pensionable age (NPA) means the earliest age at which a pension scheme member is entitled to receive immediate retirement benefits from a pension scheme in normal circumstances, or age 60, whichever is later. NPA usually coincides with normal retirement age.

Normal retirement age (NRA)

Normal retirement age (NRA) is the age at which retirement benefits normally become payable under a pension scheme. NRA will typically be defined in the member’s booklet and the governing documents of a pension scheme.

Notional service

Members of civil or public sector pension schemes (excluding the Single Public Service Pension Scheme) who are likely to have less than 40 years’ service by their minimum retirement age, can top up their benefits through the purchase of notional service (PNS). This means buying back missing years of service by way of a lump sum payment or regular payments which would usually be subject to tax relief.