Summary of DC Pension Terms
The following pension terms appear throughout this section and their meanings are described below.
Annuity- a contract with an insurance company which provides you with a regular series of pension payments in retirement, in return for the value of your individual Member Account. The level of annuity will depend upon the age at which you retire, your health, the size of the funds being invested and where you live.
Default Investment Option – if you do not make an investment choice your contributions are invested in the default option fund (currently, the 10 Year Lifestyle Profile Fund).
Fund Factsheets– these provide a summary of the individual Legal & General funds. Fund Factsheets typically set out the aim and objectives of the fund, details of the fund’s underlying investments and recent past performance.
Ill-health condition- this form of retirement is subject to assessment from a registered medical practitioner that the member is (and will continue to be) incapable of carrying on his occupation because of physical or mental impairment, and that he has in fact ceased to carry on his occupation.
Income drawdown - a facility to keep your account invested while you choose the level and frequency of income to withdraw directly from your investment funds.
Member – an employee who has joined the DC Section and is continuing to contribute to it.
Member Account – this is made up of the contributions paid under the Scheme by you and your employer and any investment returns they receive.
Target Retirement Age – the age you tell the Trustee you intend to take your benefits. If you do not choose a Target Retirement Age, the Trustees will assume you intend to take your benefits at age 65. Your actual retirement age will be subject to the consent or request of your employer and will generally be between age 55 and 65.