A pensions glossary
Accrual rate The rate at which benefits build up for each year of ‘pensionable service’ in your final salary scheme: this is often 1/60th or 1/80th.
Actuary A statistician employed by insurance companies who calculates future risks using statistical data from the past.
Actuarial reduction A reduction factor applied if you take a pension earlier than your normal retirement age to reflect the fact that your pension will need to pay out for longer, and with fewer contributions paid in.
Annuity An annuity is an income for life provided by an insurance company in exchange for a pension fund or any lump sum.
AVC Additional voluntary contribution. Some final salary schemes allow you to make voluntary extra contributions to improve ...
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