Glossary of pension terms

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Unapproved scheme

A pension scheme not designed to be approved by Revenue. Such schemes are not controlled by the Pensions Act.

Unfunded schemes

Pension schemes in the non-commercial sector, such as the civil service, local government, education and health services, are financed on a pay-as-you-go basis. This means that the cost of pensions is met from current exchequer expenditure in much the same way as the salaries and wages of employees of this sector.

Uniform accrual

A principle applied to calculate a member’s accrued benefits, in cases where the potential service of the member differs from the period required to ‘earn’ maximum benefits under the pension scheme rules. Thus, if the scheme benefit was 30/45ths of salary and the member could serve 35 years, they would be deemed to have earned 1/35th of the maximum benefit in each year of service. This principle underlies preservation of benefits under the Pensions Act.Up-rating

This is the practice of increasing the value of a benefit or contribution so that it keeps pace with any changes made in the pensionable pay appropriate to the job which the person holds or held at a particular time. Up-rating can apply to deferred benefits, refunds of contributions which become repayable on re-entry to service and to marriage gratuities which are repaid on reinstatement to membership of the pension scheme.