Helpful terms
Below is a list of the helpful terms used on this site, together with a definition of each.
Active Member
The Scheme closed to future benefit accrual. As a result, there are no longer any active members in the Scheme.
Consumer Prices Index (CPI)
In the UK, there are two main methods of measuring inflation: RPI and CPI. Both of these indices measure the average change from month to month in the prices of goods and services purchased by most households in the UK.
Contracting out of the State Second Pension Scheme
Some sections of the Scheme were contracted out of the Additional State Pension. While you were an active member, if you belonged to a contracted-out section of the Scheme, you will have paid lower National Insurance contributions. No benefits are paid from the Additional State Pension in respect of this period of membership of the Scheme. The benefits from the Scheme replace the benefits from the Additional State Pension.
The only Section of the Scheme whose members are not contracted out is BTR Green.
Deferred Member
A member who has either not transferred their benefits to another employer, or not yet retired.
Final Salary Benefits (as provided by the Scheme)
The pension that a member of the Scheme receives at retirement is determined by the rules of the Scheme. It is based on a formula related to the individual member's salary and how long they contributed to the Scheme. The size of the member's pension is not dependent upon individual investment returns. Final Salary schemes are also known as Defined Benefit schemes.
Guaranteed Minimum Pension (GMP)
The minimum pension our Scheme must provide as a result of you being contracted out of the State Earnings Related Pension Scheme which was in existence between 6 April 1978 and 5 April 1997 (if applicable).
Normal Retirement Age
The age at which you would normally retire and take your benefits from the Scheme.
Pensioner
A member of the Scheme who has started to draw their pension, or the spouse of a deceased member who is in receipt of a pension, from the Scheme.
Retail Prices Index (RPI)
In the UK, there are two main methods of measuring inflation: RPI and CPI. Both of these indices are an average measure of the change in the prices of goods and services bought by households in the UK.
Spouse
The wife or husband of a Member. In the case of polygamous marriages, the Trustee may decide who the spouse may be. The term "Spouse" also includes a civil partner in a registered civil partnership under the Civil Partnership Act 2004.
State Pension
If you reach State Pension Age before 6 April 2016
The State Pension is made up of a Basic flat-rate Pension and an Additional State Pension.
The Basic State Pension is the first part of the State Pension. The full amount is paid to employees who have paid National Insurance contributions throughout their working life. The amount is reduced for people without a complete National Insurance contribution history. The pension is not related to an individual's earnings.
The Additional State Pension is an extra amount of money you could receive in addition to your Basic State Pension. It is based on your National Insurance Contributions. How much you would receive depends on your earnings and whether you have claimed certain benefits, there is no fixed amount. While you were a member of a contracted-out pension scheme you do not contribute to the Additional State Pension.
Any Additional State Pension due would be paid with your Basic State Pension.
If you reach State Pension Age on/after 6 April 2016
In May 2014, the Government passed legislation that set up a new State Pension system, referred to as the Single Tier State Pension. The new system comes into effect on 6 April 2016. The new State Pension system will provide a higher flat-rate pension.
Trust Deed and Rules
The legal documents setting out the provisions of the Scheme.
Trustee
Brush Scheme Trustees Limited. This is a non-profit making company whose job is to administer the Scheme. As present, two directors are nominated by the Company, two directors are nominated by the members, and there is one independent director.
As the Scheme has been set up under trust, its assets remain legally separate from those of the Company. The Trustee is legally bound to act in the best interests of the members. The responsibility for running the Scheme falls to the Trustee, but it has the power to delegate certain tasks to professional advisers. Details of the Trustee and its appointed advisers are published in the Trustee's Annual Report and Accounts.