A jargon buster of frequently used pensions terminology and acronyms.

Jargon Buster

JargonWord/Phrase to useDefinition
AccrualPension build upHow much pension you have built up.
Added YearsAdded YearsA contract to buy extra years’ service. This is a contract you would have opened separately.
AggregationCombiningIf you have more than one pension record in the same fund you will be given the option to combine your pots into one.
Benefit CrystallisationPayment of benefitsA test at the date of taking your pension to check against the lifetime allowance.
Co-habiting / living together / sharing a homeCo-habitingA cohabiting partner is a partner you are living with for a period of two years of more, as if you were a married couple, are free to marry each other and are financial interdependent on each other.
CommutationSwap/convertYou can swap some of your pension to increase or create a tax free lump sum at retirement, up to 25% of your pension pot.
ConcurrentTwo or more records that have been active at the same time.
Death grant gratuity Death grant lump sumA lump sum that may be payable on the event of your death.
Deferred benefit / frozen / preservedDeferred benefitYour benefits will become deferred if you no longer contribute to the scheme and have met the vesting period, and do not claim your pension. They will be payable from age 55 with reductions.
Eligible retirement dateNormal pension ageThe date you can take your benefits without any reductions.
Estimate / forecast / projectionEstimateAn estimate of the benefits you could receive at a certain date of your choice. These are estimated figures and are not guaranteed.
Frozen refundFrozen refundif you leave the scheme with less than 2 years’ service, we will calculate the refund owed to you. This will be frozen until you claim the refund or transfer out the benefits.
Fund ValueFund ValueA fund value is your pension rights calculated and converted into a single cash sum. This would only be payable to a recognised pension scheme.
Latest ValuationPension built up so farThe amount of pension you have built up to date that would be payable from your normal pension age.
PensionPointYour online pensions portalPensionPoint is an online portal for you to view your online records, update your expression of wish and run estimates.
New starter / Admission / joinerNew joiner If you start a job in which you are eligible for membership of the LGPS you will be brought into the scheme. Your employer will automatically deduct your contributions.
NominationExpression of wishYou should complete an expression of wish form so that your wishes as to who you would like to receive any death grant can be considered. You can complete this form, or make a new one, at any time through your online account.
Normal retirement dateNormal pension ageThe date you can take your benefits without any reductions.
Partner / survivor / spouse / dependantPartnerA pension payable to your spouse, civil partner or co-habiting partner from your date of death.
PAYEIncome taxYou may pay income tax on your pension if it is over the tax-free threshold. 
Pensionable renumerationFinal salaryThis is usually the pay in respect of (i.e. due for) your final year of scheme membership on which you paid contributions, or one of the previous 2 years if this is higher. 
Pro rataPro rata If you have worked part time your service will be scaled down to reflect this.
Reductions / penaltyReductions The amount your LGPS pension is reduced if it is taken before your normal pension age.
RefundRefundIf you have less than 2 years’ service and choose to take a refund, we will pay back the contributions minus any tax.
Retirement grant / lump sumOne off lump sum paymentIf you joined before 01/04/2008 you will be entitled to an automatic lump sum. Regardless of when you joined the scheme you will be able to swap pension for a lump sum.
Trivial commutationSmall pot lump sumSome pension pots that are smaller than £30,000.00 could be paid as a one-off taxable lump sum.


AA                   Annual Allowance

APC                Additional Pension Contributions

ARC                Additional Regular Contributions

AVC                Additional Voluntary Contributions

CARE              Career Average Revalued Earnings

CETV              Cash Equivalent Transfer Value

CEV                Cash Equivalent Value

CPI                 Consumer Price Index

DWP               Department of Work & Pensions

FTE                 Full Time Equivalent

GAD                Government Actuary’s Department

GMP               Guaranteed Minimum Pension

HMRC            Her Majesty’s Revenue & Customs

IDRP               Internal Dispute Resolution Procedure

LGPS              Local Government Pension Scheme

LTA                 Lifetime Allowance

MaPS              Money and Pension Service (formerly TPAS)

NPA                Normal Pension Age

PI                    Pension Increase

POA                Power of Attorney

PSO                Pension Sharing Order

RPI                 Retail Price Index

SPA                State Pension Age

TVI                 Transfer In

TVO               Transfer Out