Glossary

Extra, optional payments you can make on top of your workplace pension for a larger amount in retirement.

The process of enrolling employees into a pension scheme, if they meet government-set criteria. Automatic enrolment has been in place since 2012, and is to help more people save for their retirement so they don’t have to rely on just their State Pension.

The limit on what you can save in pension schemes every tax year, including employer contributions and AVCs. Any savings over the annual allowance is subject to charges from HM Revenue & Customs.
The limit in 2025/26 is £60,000 per year.

The recipient/s of death benefits upon a member’s death.

A yearly statement that shows your current fund value and estimated retirement income.

These are issued to members currently paying into the Scheme, normally in August/September.

What you (or your beneficiaries) are entitled to receive from the Scheme, in the form of regular monthly payments and/or lump sums.

A type of defined benefit (DB) pension scheme that provides an income for life based on an average of your pensionable salary over your time with your employer.

When you retire, you can choose to give up some of your annual pension in exchange for a tax free cash lump sum. This means you’ll receive money upfront, but your pension payments for the rest of your life will be reduced.

Annual increases to your pension based on the Consumer Prices Index (CPI), which measures changes in the cost of living and helps protect the value of your pension over time.

The benefits built up to a deferred member’s date of leaving the Scheme. They will remain with the Scheme until the member retires or transfers the pension elsewhere.

A type of pension scheme that provides members with a guaranteed income for life.

Someone who has left the Scheme but hasn’t taken their benefits yet. Sometimes also called preserved benefits.

A person who is or was dependent on a member e.g. a spouse or child.

HM Revenue & Customs determines the tax rules that apply to pension schemes.

A formal procedure that all pension schemes have to have in place and designed to resolve disputes between members and the Trustee. An IDRP is usually used if there is a complaint that can’t be resolved by the administration team.

An individual or company who performs the duties of the trustee but has no other direct or indirect involvement with the Scheme or its advisers, the sponsoring employer or the members.

A type of defined benefit (DB) pension scheme that provides an income for life based on your years of service and pensionable salary at retirement.

The limit on the total tax-free lump sums you can receive from your pension benefits during your lifetime. The current standard allowance is £268,275. If you retire and take a tax-free lump sum of £50,000, you would have used £50,000 of your Lump Sum Allowance, leaving £218,275 available for any future tax-free lump sums from other pension arrangements. Most members will not come close to using the full allowance.

A one-off cash payment from your pension benefits. Members in the Final Salary part of the Scheme receive an automatic retirement lump sum. Members in the CARE part of the Scheme do not receive an automatic lump sum but can choose to take one by exchanging part of their annual pension at retirement.

The earliest age at which you can normally start taking your pension benefits. This age is set by law and may be different from your Scheme’s Normal Pension Age. Benefits can sometimes be paid before the NMPA in special circumstances, such as where ill-health retirement applies. The NMPA is currently 55, but is due to increase to 57 from 6 April 2028.

The age at which you can normally take your pension without any early retirement reduction. Depending on the section of the Scheme you are a member of, your NPA may be linked to your State Pension Age or a fixed age set out in the Scheme Rules. This is sometimes referred to as your Normal Retirement Age.

The process of agreeing to take part in your workplace pension scheme.

The decision to not take part or no longer take part in your workplace pension scheme.

The portion of your salary used to calculate your pension.

A person who is currently receiving a pension from a pension scheme.

A Club that lets members transfer pension benefits between participating pension schemes, mainly in the public sector, on special terms.

The total amount of time you spend in an employed role that counts towards building your pension.

The Principle Employer of the Scheme is UK Research and Innovation; MRC is part of UKRI.

The age at which you can start receiving your UK State Pension. It is set by the UK Government and may change in the future. For members of the CARE part of the Scheme, your Normal Pension Age (NPA) is normally the same as your State Pension Age.

A government benefit that helps make the contributions you pay into the Scheme cost less. This means the reduction in your take-home pay is usually less than the amount contributed towards building up your pension benefits.E.g. A £100 pension contribution may only reduce a basic-rate taxpayer’s take-home pay by £80.

The process of transferring the value of your pension benefits from this Scheme to another pension arrangement. If you transfer out, you will give up the benefits that would otherwise have been payable from this Scheme.

The cash value of your pension benefits that may be transferred from the Scheme to another registered pension arrangement. The amount is calculated in line with the Scheme Rules and relevant legislation.