A

Active member: An employee of Wincanton plc who joined the Scheme and continues to pay contributions.

Annual Allowance (AA): The maximum amount that you can pay tax free into all of your registered pension arrangements per year. Any amount you pay over this allowance may attract tax charges.

Annuity provider: Usually an insurance company that provides an income in retirement (for life) in exchange for a one-off payment.

B

Basic State Pension: Your State Pension is a regular payment you can claim from the government once you reach State Pension age if you have paid enough National Insurance contributions during your working life. You can get an online forecast to tell you how much you might get and the earliest you can claim.

C

Complaints and Disputes Procedure: This is a formal procedure that sets out how a member can make an application for a decision on a dispute

D

Deferred member: Someone who is no longer an active member, either because they have left the company or opted out of the scheme, but has not started taking their benefits.

Defined Benefit (DB): A type of pension scheme where benefits are calculated by reference to a fixed formula which is usually based on the value of a member’s salary and length of pensionable service, irrespective of the contributions paid or investment performance of the scheme.

Defined Contribution (DC): A type of pension scheme where benefits are based on the value of contributions made by the member and the company, together with any investment return. The size of the pension account will determine the level of benefits payable at retirement and during retirement.

Dependant: Someone who is partly or wholly dependent on you. This usually covers children under the age of 18 (or older if in full time education), partners including civil partners and same-sex partners.

H

HM Revenue and Customs (HMRC): Responsible for the registration of pension schemes and the taxation of contributions and benefits.

L

Lifetime Allowance (LTA): The maximum amount of pension benefits that you can build up, tax free over your lifetime across all pension schemes (excluding the State Pension).

N

Nomination of beneficiary: A form used to let the Trustee of the Wincanton plc Pension Scheme know who you would like to nominate to receive any lump sum benefits in the event of your death.

P

Pensionable earnings: refers to the pay on which pension contributions are deducted.

Preserved benefits: Benefits built up in a pension scheme up to the date when someone stops being an active member. The member will receive their preserved benefits when they eventually retire.

R

Retired member: A member who has started to receive benefits from the Scheme.

S

SMART Pensions: An arrangement where employees agree to reduce their gross salary and in exchange Wincanton plc pays an additional company contribution into the pension scheme equal to the reduction in salary. Participating in SMART Pensions means that under current rules you pay less National Insurance in addition to receiving tax relief.

T

Transfer Value: This is the cash equivalent value that the Scheme will pay if you leave the Scheme and transfer benefits to your new employer’s pension scheme, or a suitable private personal pension arrangement. The new arrangement must be a recognised scheme under HMRC requirements. It is recommended that you take financial advice before transferring your benefits.

Trust Deed and Rules:  A legally binding document that defines the powers and duties of the trustees and details the pension benefits which must be provided to members of a pension scheme.