- Accrual rate
The proportion of pensionable pay that each year of membership adds to your pension – effectively the speed at which your pension builds up - Actuarial reduction
The amount a pension is reduced if you take it early before Normal Pension Age - Benefits
Any payments made on behalf of your pension including lump sum, pension payments and death benefits - CARE
Career Average of Revalued Earnings. A type of defined benefit pension scheme calculated using your average earnings over your career and the length of membership of the scheme - Commutation
Exchanging pension for cash lump sum at retirement Commutation factors determine the rate of exchange of pension for cash. - Consumer Prices Index (CPI)
This is the official measure of price inflation determined by the Office of National Statistics - Contributions
Money paid into your pension scheme - Deferred Pension
Pension built up by members who have left pensionable service but not yet taken their pension - Defined Benefit
A pension scheme that determines how much pension you will get by reference to a set formula, rather than the performance of investments and cost of annuities. The amount of pension you will receive is based upon how many years you have been in the scheme and your salary - Dependent
Someone who relies to some extent on your income as defined in the pension scheme rules. Your partner and children are usually considered dependents, but you may have others - Final salary
A type of defined benefit pension scheme in which your pension is determined by your length of service and salary at retirement - Member
A person who, having joined a pension scheme, has built up benefits in that scheme - Normal Pension Age (NPA)
The earliest age at which a member can receive full pension benefits. It is not the same as your intended retirement from employment - Pensionable pay
The pay used to calculate employee contributions and benefits as defined in the pension scheme rules - Pensionable service
The period of service as a member of a pension scheme relevant for determining benefits - Revaluation rate
The rate by which pension built up each year under a CARE arrangement is increased, while the member is in pensionable service. The index used will be the Consumer Price Index published by the Office for National Statistics - State Pension Age
The age at which, based on your date of birth, your state pension becomes payable. This is set by legislation, rather than the pension scheme - Tax relief
Pension contributions are deducted from your earnings before tax. This is known as pension tax relief