Pensions 2008 - Glossary

  • Actuary

    An independent pensions expert.

  • Actuarial valuation

    An in-depth examination of the Plan's finances.

  • Assets

    The amount of money invested and held by the Plan.

  • Assumptions

    The Actuary has to make various assumptions about the future, including:

    • economic assumptions such as future rates of inflation, salary increases and investment returns, and also
    • demographic assumptions, for example, the likelihood of members dying at a particular age before or after they retire and whether they’re likely to be married before they die.

  • Liabilities

    The amount expected to be needed to provide benefits earned by members.

  • Shortfall

    Also known as a deficit; where the Plan's liabilities (what it has to pay out) are greater than its assets.

  • Trustee

    An independent trustee board that ensures that the Plan is well-managed in the interests of all members.