Accrual rate
defines the rate at which pension benefits build up with service in a defined benefit retirement benefits scheme. For example, if the accrual rate is 2.4% per annum, a member that has 10 years of service will have build up a pension benefit of 24% of annual salary.
Accrued benefits
means the total benefits of a member of a retirement benefits scheme as determined by the Rules of the scheme and other parameters.
Active Member
means a member of a retirement benefits scheme who is contributing to that scheme.
Actuarial assumptions
means the set of assumptions made by the actuary as to rates of return, inflation, increase in earnings, mortality, etc, which form the basis of an actuarial valuation or other actuarial calculation.
Actuarial valuation
means an analysis made by an actuary of the assets and liabilities of a retirement benefits scheme based on actuarial assumptions.
Actuary
means a professional trained to determine the solvency of a retirement benefits scheme through an actuarial valuation.
Administrator
means a person licensed by URBRA, and appointed by trustees to administer a retirement benefits scheme.
Annuitant
means a person who is receiving an annuity.
Annuity
means a schedule of fixed or variable payments for the life of a person or for a specified period of time.
Asset Allocation
is the spread of fund investments among different asset classes.
Asset
means the any property of a retirement benefits scheme including: investments, securities, shares, cash, real estate and other forms of ownership.
Auditor
means an individual or firm approved by URBRA, and appointed by the trustees of a retirement benefits scheme to examine and report on the financial statements of the scheme.
Auxiliary benefits
mean benefits that are provided under a retirement benefits scheme in addition to the pension benefits, such as survivor benefits and invalidity benefits.
Benefit statement
means a statement of the benefit entitlements of a member or beneficiary of a retirement benefits scheme.
Board of Trustee
means the governing body of a retirement benefits scheme, which is ultimately responsible for managing the scheme with the overriding objective of providing a secure source of retirement income.
Buy-out
means the purchase of an annuity for a member of a retirement benefits scheme that will guarantee the same benefits as that of the scheme.
Commutation factor
defines the relationship between a lump sum payment received and the future income stream foregone.
Contribution holiday
means a period when the contributions to a retirement benefits scheme are suspended due to the scheme being overfunded.
Contribution rate
means an amount (usually expressed as a percentage of the contribution base) that is needed to be paid into the Retirement Benefits Scheme
Contributory scheme
means a retirement benefits scheme that requires the employer and/or the members to contribute to the scheme.
Corporate trustee
means a legal entity licensed by URBRA to perform the functions of a trustee of a retirement benefits scheme.
Custodain
means a Financial Institution licensed by URBRA, and appointed by the trustees for the safe custody of the funds, securities, financial instruments and documents of title of the assets of a retirement benefits scheme.
Deferred annuity
means an annuity which commences at a future date.
Deferred benefit
means a benefit whose payment commences at a future date.
Deferred member
mean a member of a retirement benefits scheme who no longer contributes to or accrues benefits from the scheme, but has not yet received benefits.
Defined benefits (DB) Scheme
means a retirement benefits scheme where the benefits in the scheme rules are defined according to a formula related to members’ earnings, length of service and other parameters.
Defined contribution (DC) scheme
means a retirement benefits scheme in which a member’s benefits are determined by the contributions paid into the scheme in respect of that member, and any investment returns.
Early Retirement
refers to the circumstances when an individual decides to retire earlier and draw the pension benefits earlier than their normal retirement age.
EET System
means a form of taxation of retirement benefits schemes where contributions, investment income and capital gains are exempt from tax, and the benefits are taxed.
TET System
means a form of taxation of retirement benefits schemes where contributions and benefits are exempt from tax, and investment income and capital gains are taxed.
Fund manager
is a person licensed by URBRA, and appointed by trustees to advise and invest the assets of a retirement benefits scheme in accordance with the investment policy statement of the scheme.
Funding level
determines whether a scheme is solvent or not and is determined by expressing the actuarial value of a schemes assets to the actuarial value of that schemes liabilities.
Guaranteed annuity
means an annuity that is paid for a minimum period of time regardless of whether the annuitant is alive or not.
Hedging
means an investment strategy aimed at reducing potential investment losses.
Incapacity
means the inability to continue working due to ill health or disability.
Independent trustee
means an individual licensed by URBRA and a member of the board of trustees that is independent from the retirement benefits scheme, the members, the employer(s) and the service providers to the scheme.
Indexation
means the method with which retirement benefits are adjusted to take into account changes in the cost of living (e.g. price and wage inflation).
Irrevocable trust
means a trust created for the benefit of designated beneficiaries which shall not be revoked or canceled after its creation.
Liabilities
mean the obligations of a retirement benefits scheme towards the members and beneficiaries.
Liquidation
means the insolvency of a retirement benefits scheme where the scheme is wound up, the assets of the scheme are realized, and the proceeds distributed amongst the members and creditors in a prescribed way.
Mandatory contribution
means the level of contribution that an employer and employee are obliged by law to contribute to a retirement benefit scheme.
Member
means a person who is admitted to the membership of a retirement benefits scheme.
Non-contributory scheme
means a retirement benefits scheme where the employer is liable for all benefits under the scheme.
Occupational retirement benefits Scheme
means a scheme established by an employer or a group of employers for the benefit of their employees.
Pensionable earnings/salary
means the earnings/salary on which benefits and/or contributions are calculated.
Pensioner
means a member who has retired and is entitled to receive pension.
Portability
means the ability of a member to transfer his or her accrued benefits from one retirement benefits scheme to another.
Retirement benefits scheme
means any legal arrangement created for the purpose of providing retirement benefits in the form of annuities or a lump sums payable upon retirement, death, termination of service or upon the occurrence of a specified event.
Retirement date
means the date on which a member becomes entitled to retirement benefits in terms of the rules of the retirement benefits scheme.
Scheme Rules
means the rules governing the constitution, administration and management of a retirement benefits scheme.
TEE System
means a form of taxation of retirement benefits schemes whereby contributions are taxed, and investment income, capital gains and benefits are exempt from tax.
Trsust deed
refers to the legal document/instrument which establishes the legal entity of the retirement benefits scheme.
Trust
means an arrangement under which a person or a group of people (trustees) hold and look after property on behalf of others.
Trustee
means an individual licensed by URBRA and a member of the board of trustees.
Umbrella scheme
means a retirement benefits scheme which is established for the purpose of providing benefits to an individual or group of individuals, employees of a body corporate, members of an association or a professional body, or employees of a single employer or a group of employers, and admission to membership is not restricted.
Whistle blower
means a person who reports a breach of the law to the relevant authorities.