Jargon Buster
D
Death after Retirement Benefits
The pension and lump sum paid to the deceased member's spouse and/or other dependants where death occurs after retirement or after the member's normal retirement date if s/he is retiring late.
Death in Service Benefits
The pension and lump sum paid to the deceased member's spouse and/or other dependants where death occurs while still working for his/her employer, before his/her normal retirement date.
Debit card
Operates like a credit card except that the normal amount is deducted directly from your bank account so that no debt is accrued.
Deed of Covenant
An agreement in a deed to transfer income from one person to another in a tax efficient way.
Defined Benefit Scheme
Also known as a Final Salary Scheme. This is the traditional form of company or occupational pension where your pension is calculated as a proportion of your salary in the last few years of work
with the proportion depending upon how many years you have been in your company scheme.
Defined Contribution Scheme
Also known as a Money Purchase Scheme. A scheme where the amount of a member's retirement benefits depends on the contributions paid into the scheme in respect of the member. The rate of the contributions is decided by the employer.
Depolarisation
The new depolarisation rules are aimed at increasing customer choice and making it easier for people to understand the services and scope of advice available to them, along with the likely costs of that advice.
Now, financial advisers can offer advice:
- across the whole market ( IFAs)
- from a limited number of providers (often referred to as multi-tie)
- from a single provider (often referred to as single-tie)
Distribution
Payments made to investors of income generated by an investment fund.
Dividend
The distribution to shareholders of a company's profits in proportion to the number of shares held.
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