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Glossary

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M-P 

Maximum Lump Sum: The maximum cash you can take from your pension benefits when you retire. HMRC determine this as being 25% of your pension value.

Member contributions: The amounts paid by active scheme members into their pension schemes.

MHO: Mental Health Officer. 

Minimum Retirement Age: This is the lowest age you can take your benefits. This is age 55.

 

National Insurance (NI): The national system of benefits paid in specific situations, such as retirement, based on compulsory earnings-related contributions by employers and employees. Self-employed people make contributions on a different basis.

New Firefighters’ Pension Scheme (NFPS): The NFPS is a statutory, public service pension scheme made under section 34 of the Fire and Rescue Services Act 2004.This is an unfunded pay as you go scheme and contributions made by members are not invested in a pension scheme. What this means is that current pensions are paid by a combination of members contributions and payments by the Fire and Rescue Authority.

New Police Pension Scheme (NPPS): The 2006 Police Pension Scheme (NPPS) applies to all serving police officers who joined the service on or after 6th April 2006, unless they decided to opt out, and anyone who decides to transfer from the 1987 Police Pension Scheme (PPS).

National Fraud Initiative (NFI): This authority is required by law to protect the public funds it administers.  It may share information provided to it with other bodies responsible for auditing or administering public funds, in order to prevent and detect fraud. (Further Details). 

NHS Staff: Most employees working for the NHS in Scotland.

National Health Service Superannuation Scheme (Scotland) (NHSSS): A statutory – guaranteed by law – Scheme which provide pensions and life assurance for those employed by the NHS in Scotland. It also provides benefits upon a members death for life to either your legal spouse, registered civil partner, qualifying partner or dependant children until the age of 23 (however this can be extended in certain circumstances).

Normal Pension Age (NPA): The age at which you can choose to retire from the Scheme and have the full value of your pension paid. 

 

PIB: Partial Incapacity Benefits.

Pension: An annual amount of income paid once you have retired from a Scheme. 

Pensionable Pay: The amount of your salary that is used to calculate the contributions you pay.

Pensionable Earnings: The amount of your income that represents your earnings for NHS work and is used to calculate the contributions you pay and how much your pension will be. Some members who have transferred benefits into the Scheme may have been restricted by a maximum amount set by Revenue and Customs (the earnings cap) for service between 1st June 1989 and 31st March 2008 when the limit was removed. Additionally dentists may have previously been affected by a restriction called the Maximum Allowable Remuneration but this also has been removed from 31st March 2008. Affected members will receive pensions based on capped earnings before the change and uncapped earnings after the 31st March 2008.

Pensionable Service: The time you spend at work that counts towards your pension.

Pension Value: This is a definition of the value of your pension as determined by HMRC and is calculated by multiplying your pension by 20 and adding the value of your lump sum.

Personal Lifetime Allowance: Your Personal Lifetime Allowance will be either the normal Lifetime Allowance or a higher amount granted to you by the HMRC, for example under Primary Protection.

Personal Pension: A separate pension that you can take out to save towards your retirement.

Police Pension Scheme (PPS): The 1987 Police Pension Scheme (PPS) applies to all serving police officers who joined the service before 6th April 2006, unless they decided to opt out. The scheme is administered locally by police authorities. Costs are met partly from the contributions of currently serving officers, with the balance met by police revenue expenditure.

Practice Staff: Staff who work for a General Practice or for other employers connected to the NHS for whom agreement has been reached that they can participate or continue in the NHS pension arrangements.

Practitioners: NHS medical, dental and ophthalmic practitioners, including assistants, registrars and some locums.

Preserved Benefits: A pension (and retirement lump sum) that is due to be paid at a later date. 

Preserved Members: People who have left the Scheme but have not yet taken their pension.

Primary Protection: This is an option to protect pension rights built up prior to A-Day from the Lifetime Allowance Charge. The option is open to members who fund exceeds £1.5m at A-Day. Protection again must be registered with the HMRC, however, the application period to apply is now closed.

Protected Rights: Funds which have built up either directly or indirectly, as a result of being contracted-out of the State Second Pension. Contracted out ended 5 April 2016.

 

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