Pension Key Terms and Concepts

Course Overview

This course introduces learners to the foundational terminology and principles that underpin pension administration and governance. It provides a clear understanding of the key terms, definitions, and concepts used within the pensions industry — essential for trustees, administrators, and professionals working with retirement benefit schemes.
Through practical examples and simplified explanations, the course demystifies complex pension language, ensuring participants gain confidence in interpreting pension documents, regulations, and reports accurately. By the end, learners will have a solid grasp of how these core concepts interact to shape pension scheme operations and member benefits.

Key Topics

• Understanding Pension Schemes – Definitions, structure, and the role of trustees, sponsors, and regulators.

• Key Pension Terminology – Commonly used industry terms such as accrual rate, vesting, commutation, and annuity.

• Types of Pension Plans – Differences between Defined Benefit, Defined Contribution, and Hybrid schemes.

• Regulatory and Legal Framework – Overview of governing laws, compliance obligations, and oversight by regulatory bodies.

• Contributions and Benefits – How contributions are structured, benefits calculated, and payouts managed.

• Scheme Funding and Investments – Basic principles of how pension funds are financed and invested for sustainability.

• Member Communication and Disclosure – Importance of clear communication, statements, and transparency to scheme members.