Glossary of pension terms

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Qualified auditor

A person appointed to audit the accounts of a pension scheme who must not be:

  • a member or trustee of the pension scheme,
  • a person employed by any of the trustees,
  • an employer of any member of the pension scheme, or
  • a director of the employer or a participating employer.

Qualified member

In relation to the member trustee selection process, an active member or a pensioner (but not a deferred pensioner or a dependant or other beneficiary receiving payments from the scheme).  Qualified members may vote in a preliminary poll or an election organised for the purpose of selecting new trustee(s) of a relevant pension scheme.

Qualifying service

Currently, a pension scheme member must complete two years’ qualifying service before they are entitled to a benefit (formally called a ‘preserved benefit’) from the pension scheme on leaving service. Qualifying service is defined in the Pensions Act. It broadly means service as a member of the pension scheme plus service in any other pension scheme relating to the same employment plus any period in a previous pension scheme from which a transfer value has been received.