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 Actuarial valuation

an examination of an approved retirement savings plan to determine if it is actuarially sound. A plan is actuarially sound if funds are accumulating at a rate sufficient to provide the promised pension benefits when due. This involves a determination Astor composition of the work force earning levels turnover interest earned mortality and any other factors affecting cost to determine if they are consistent with the assumptions on the basis of which the plan was established. Generally used in connection with self-administered trustee split-funded or deposit administration plans since under group annuity plans the insurance carrier guarantees the payment of all benefits.- The Insurance Dictionary 3rd Edition

 Actuarial value of assets

The value of cash investments and other property belonging to a pension plan as used by the actuary for the purpose of an actuarial valuation. The statement of actuarial assumptions should set forth the particular procedures used in determining this value.- www.ifebp.org Glossary of Terms

 Actuarially reduced annuity

an annuity payable to an employee who retires before normal retirement age. The amount is less than would have been payable at normal retirement age since contributions will have been paid and interest accumulated for a shorter period. Starting the payments at an earlier age will increase the probable number of annuity payments. (See also actuarial equivalent)- The Insurance Dictionary 3rd Edition

 Actuarially sound

an approved retirement savings plan is considered to be actuarially sound when the amount of money in the fund and the current level of contributions to the fund are sufficient (on the basis of assumptions on interest mortality and employee turnover) to meet the liabilities that have accrued and that are accruing on a current basis.- The Insurance Dictionary 3rd Edition

 Actuary

means a person who-(a) is a fellow of such professional organization of actuaries as may be prescribed; and(b) satisfies such other requirements as may be prescribed and includes a firm of such persons- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 s2

 Administrative Manager (Employee Benefit Plans)

Firm or individual providing professional administrative services to an employee benefit plan. May be compensated under either a salaried or contract arrangement.- www.ifebp.org

 Administrative Services Only (ASO)

An arrangement in which a plan hires a third party to deliver administrative services to the plan such as claims processing and billing; the plan bears the risk for claims. Common in self-funded health care plans.- www.ifebp.org

 Administrative Services Only (ASO)

An arrangement in which a plan hires a third party to deliver administrative services to the plan such as claims processing and billing; the plan bears the risk for claims. Common in self-funded health care plans. - www.ifebp.org

 Administrator

means a company which is licensed pursuant to section 7 (1)(a) to administer an approved Superannuation Fund or approved Retirement Scheme;- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 s2

 Administrator pension plan

Any pension or institution designated as administrator in a pension plan instrument; or if an administrator is not being so designated the plan sponsor; or in the case of a plan in which an administrator is not designated and the plan sponsor cannot be identified any person who the secretary of labour may describe by regulation. (in the case of Jamaica any person who the FSC may describe by regulation).- The Insurance Dictionary 3rd Edition

 Adult

A legal determination referring to one who has reached maturity; a person who has reached the age of legal capacity.- The Insurance Dictionary 3rd edition

 Adult Day Care

Provision during the day on a regular basis of a range of services that may include health medical psychological social nutritional and educational services that allow a disabled or elderly person to function in the home or at a centre.- www.ifebp.org

 Advance Funding

An approach to funding retirement or other benefits whereby the employer sets aside monies for each employee or for the group of active employees as a whole on some systematic basis during their working years. An employer sets aside funds on a systematic basis to provide pension benefits; involves periodic contributions on behalf of the active employee group.- www.ifebp.org

 Advisor

means any person on whose skill and judgement a trustee in the exercise of his duties places reliance including the actuary auditor banker and attorney-at-law of the fund or scheme- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 (Governance) Regulations2006 s2

 After-care

Continued contact that will support and increase the gains made to date in a health treatment process and prevent relapse.- www.ifebp.org

 After-tax contribution

A portion of a person’s income that has already been taxed by the IRS (USA)(In Jamaica Income Tax Department - also known as TAAD)that is contributed to a qualified plan. After-tax contributions are not as tax efficient as contributions with before-tax income.www.ifebp.org

 Agent

means any individual firm or body corporate not being an employee of an insurer-(a) appointed by that insurer to solicit applications for insurance or negotiate insurance on its behalf (otherwise than through an agent);(b) other than a broker authorized by the insurer to effectuate and countersign insurance contracts on its behalf.- The Insurance Act 2001 s2

 Agent of Trustees

means any person who performs any part of the functions or discharges any part of the duties or responsibilities of the trustees and includes the investment manager administrator or nominees of the trustees.- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 (Governance) Regulations2006 s2

 Aggressive Growth Fund

A mutual fund that aims to provide maximum long-term capital growth primarily from stocks of smaller companies or narrow market segments.- www.ifebp.org Glossary

 Aggressive Portfolio

A securities portfolio containing issues held primarily on the assumption that they will appreciate in value as opposed to securities that provide greater yield or have good defensive qualities. Compare with Defensive Portfolio.- www.ifebp.org Glossary

 Allocated Funding instrument

A pension funding instrument by which contributions are assigned to provide benefits for specific employees. Examples are individual insurance and annuity contracts group permanent contracts and group deferred annuity contracts.- www.ifebp.org

 Allocation

In a pension plan an accounting method for spreading income or expense but not necessarily on a time basis. For example allocation of an expenditure between current expense and capital accounts.- The Insurance Dictionary 3rd Edition

 Alternative Dispute Resolution (ADR) Procedure

A procedure designed to settle disputes and avoid costly litigation. It involves a written complaint an automatic appeal to arbitration in termination cases and a final and binding decision in all cases.- www.ifebp.org Glossary

 Alternative Dispute Resolution (ADR) Procedure

A procedure designed to settle disputes and avoid costly litigation. It involves a written complaint, an automatic appeal to arbitration in termination cases, and a final and binding decision in all cases. - www.ifebp.org Glossary

 Alternative Medicine

Also known as Complimentary and Alternative Medicine. Includes non-traditional medical practices such as acupuncture chiropractic herbal medicine homeopathy massage therapy and yoga that focus on the entire person not just the physical and on the innate healing power within. Alternative medicine stresses quality of life use of natural substances being healed as opposed to being cured and energy flow.- www.ifebp.org Glossary

 Amendment

(General) An addition deletion or change in a legal document. (Employee Benefit Plans) A change in the terms of an existing plan or the initiation of a new plan. A plan amendment may increase benefits including those attributed to years of service already rendered. (Insurance) A formal document changing the provisions of an insurance policy signed jointly by the insurance company officer and the policyholder or his or her authorized representative. See also Retroactive Benefits.- www.ifebp.org Glossary

 Amortization

The act or process of extinguishing a debt or other liability usually by equal payments made at regular intervals that will reduce the outstanding debt to zero at the end of a given period of time. - The Insurance Dictionary 3rd Edition

 Ancillary benefit

means a benefit other than a pension or a pension benefit that may be provided by an approved Superannuation Fund or an approved Retirement Scheme being a disability or death benefit or such other benefit as may be approved by the Commission.- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 s2

 Anniversary date

The annual recurrence of the policy date of issue.- The Insurance Dictionary 3rd Edition

 Annual benefits statement

A report containing specific information about the status of a participant’s projected pension income or account balance. Can include a description of the value and cost of health and welfare benefits and is often distributed to employees to promote awareness and appreciation of benefits.- www.ifebp.org Glossary