Jargon buster

Additional Voluntary Contributions (AVCs) Extra payments that you can make on top of your ordinary Plan contributions to provide extra pension under the Plan.
Basic Pay Basic salary or wage excluding overtime, bonuses, directors' fees, shares of profits, repayment of expenses and any other fluctuating work-related pay. If you participate in SMART Pensions, your Basic Pay includes the amount your basic salary or wage has been reduced as a result of you participating in SMART Pensions.
Basic Pension The formula used to work out your main pension entitlement from the Plan.
1/60 x Final Pensionable Pay x Pensionable Service = Basic Pension

The accrual rate is:

  • 1/55th for Pensionable Service prior to 1 June 2010.
  • 1/60th or 1/70th for Pensionable Service from 1 June 2010.
Basic State Pension This is a set amount available from State Pension Age (SPA) to everyone who has paid sufficient National Insurance contributions during their working lifetime.
Civil Partner The person with whom you have entered into a civil partnership.
Company The Principal Company or a Participating Employer.
Eligible Child A child (including a legally-adopted child, an unborn child, a step-child, or a child in relation to whom the Trustee believes you stood in the place of the child's parents) who:

(a) is under 16 (except where the child is not your natural or adopted child, in which case he or she must also have been financially dependent on you at the date of your death); or

(b) is under 23 and is in full-time education or training for any trade or profession or vocation approved by the Trustee (except where the child is not your natural or adopted child, in which case he or she must also have been financially dependent on you at the date of your death); or

(c) in the opinion of the Trustee is both permanently disabled and, immediately before your death, had been dependent on you for the ordinary necessities of life.
Enhanced Pension This benefit is payable to all employees who were members of the Old Fund on 31 July 1988 who transferred on 1 August 1988 to the Plan. The benefit is also payable to other employees who joined the Plan on or after 1 August 1988 who have contributed at the Middle or Top Tier. Enhanced Pension is paid from the month you reach age 65 for the rest of your life. How much Enhanced Pension you receive depends on whether you were a member as at 1 August 1988 and whether you are in the Basic or Enhanced Tier. Enhanced Pension is calculated as follows:

Pre-1 August 1988 Pensionable Service
Enhanced Pension is paid irrespective of the Tier of contribution selected.
Pensionable Service up to 1 August 1988 x 1/55 x 25% Final LEL Pay

Members who joined after 1 August 1988 Pensionable Service, will receive an Enhanced Pension related to their contribution Tier as follows:
  • Basic Tier: No Enhanced Pension is available
  • Enhanced Tier:
    Pensionable Service after 1 August 1988 x accrual rate x Final LEL Pay
If you change your Tier of contribution your Enhanced Pension will be calculated in proportion to the period each Tier of contribution was paid.

The accrual rate is:
  • 1/55th for Pensionable Service prior to 1 June 2010
  • 1/60th or 1/70th for Pensionable Service from 1 June 2010
Final LEL Pay The annual average of the Lower Earnings Limit received in the last five years of Pensionable Service but not less than if it had been calculated as at 31 May 2010, using the best continuous 12 months out of the last five years of Pensionable Service prior to 1 June 2010.
Final Pensionable Pay The average of your Pensionable Pay received in the last five years of Pensionable Service but not any less than if it had been calculated as at 31 May 2010 using the best continuous 12 months out of the last five years' Pensionable Service.
Guaranteed Minimum Pension (GMP) The part of your pension which relates to contracting out of the State Earnings Related Pension Scheme (SERPS) before 6 April 1997.
Lower Earnings Limit (LEL) The amount set by the State which is used in the calculation of National Insurance contributions. The annual amount of the LEL for the tax year ending 5 April 2011 is £5,044.
Normal Retirement Date (NRD) The first day of the month immediately following your 65th birthday.
Old Fund The Vauxhall & Associated Companies Pension Fund.
Participating Employer Any employer currently participating in the Plan.
Pensionable Pay
  1. Basic Pay less the Lower Earnings Limit.
  2. From 1 June 2010, increases to Pensionable Pay are capped at the Retail Prices Index on an annual basis. Exceptions can be made for major promotions, as determined by the Principal Company. Pensionable Pay may decrease on major demotions unless the Principal Company determines otherwise.
  3. If you joined after 31 May 2010, your Pensionable Pay for the first pay year is determined by the Principal Company as either:
    (a) Option 1 - what the Principal Company determines it would have been had you been a member in Pensionable Service on 31 May 2010; or
    (b) Option 2 - such amount as the Principal Company otherwise determines.
  4. For second and subsequent pay years, paragraph 2 above applies.
Pensionable Service Your service as a member of the Plan. This is normally continuous Company service in respect of which you have contributed to the Plan, but some members are granted extra Pensionable Service in exchange for a transfer payment from another scheme.

If you work part-time, your Pensionable Service during your period of part-time working is rated down proportionately, but for benefit purposes your Final Pensionable Pay and Pensionable Pay are calculated as if you were working full-time. For contribution purposes your Pensionable Pay is calculated as what it would have been if you were working full-time and is then rated down proportionately.
Principal Company Millbrook Proving Ground Limited.
Prudential Prudential Assurance Company Limited.
Qualifying Service Your service as a member of the Plan. This may also include other categories of service. For example, benefits may have been transferred to the Plan, from another employer's plan.
Spouse The person to whom you are married.
State Pension Age (SPA)
  • For a woman born before 5 April 1950, your SPA is 60.
  • For a woman born between 6 April 1950 and 5 April 1955, your SPA will be between 60 and 65.
  • For a woman born between 6 April 1955 and 5 April 1959 or a man born before 6 April 1959, your SPA is 65.
  • For a woman or a man born after 5 April 1959, your SPA will be between 65 and 68, phased in between 2024 and 2046.
The Plan The Millbrook Pension Plan
Tier The level at which you make contributions and receive benefits from the Plan.
Top-up Pension Additional pension paid to you by the Plan if you joined the Plan before 6 April 1997 and retire before your State Pension Age and with Company consent.

The Top-up Pension ceased to accrue from 1 June 2009 and is calculated as follows:

Top-up pension per year = Pensionable Service prior to 1 June 2009 (maximum of 30 years) x £55
Trustee Millbrook Pension Management Limited.

The Pensions Department
AW House
6-8 Stuart Street
Luton
Beds
LU1 2SJ

Telephone:
01582 282956 or
01582 282957

Email:
team@thepensiondepartment.co.uk