Glossary

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 Classified employment

means employment in respect of which by virtue of regulations made under paragraph (c) of subsection (3) of section 3 of the Act an insured person is treated as a self-employed person;- National Insurance (Self-Employed Persons' Wage-Related Contributions) Regulations. 1973.

 Cliff vesting

Full 100% vesting after x years of service with no gradation of vesting before that time. Benefits must be 100% vested after five years. If participants leave the company or are terminated prior to the vesting date no partial benefits are received. See also Graded Vesting; Vesting.- www.ifebp.com

 Collector

means a Collector of Taxes.- National Insurance (Self-Employed Persons' Wage-Related Contributions) Regulations. 1973.

 Commission

means the Financial Services Commission established under section 3 of the Financial Services Commission Act;- The Pensions (Superannuation Funds & Retirement Schemes) Act 2006

 Commissioner of Taxpayer Appeals

means the Commissioner of Taxpayer Appeals appointed under section 1lB of the Revenue Administration Act;- The Income Tax Act 1955

 Commuted Value

means for the purpose of determining the lump sum amount that is equivalent to a pension an ancillary benefit or a pension benefit the value calculated by an actuary in the prescribed manner and as of a fixed date;- The Pensions (Superannuation Funds & Retirement Schemes) Act 2006

 Company

means any company incorporated or registered under any enactment in force in the Island and any company which though incorporated or registered outside the Island carries on business or has an office or place of business therein;- The Income Tax Act 1955

 Compensation

An approach to assigning a monetary value to work performed by employees. Compensation may include wages salary base pay overtime pay profit sharing vacations and all benefits employees receive in return for their work.-www.ifebp.org

 Compound Interest

The interest upon principal that is being increased or augmented periodically by interest paid on the previous amount of principal. Interest may be compounded daily monthly quarterly semi-annually or annually.- www.ifebp.org

 Compounding

The arithmetic process of finding the final value of an investment or series of investments when compound interest is applied. That is interest is earned on the accrued interest as well as on the initial principal.- www.ifebp.org

 Compulsory Contributions

means contributions which are made by or on behalf of an active member as a requirement for participation by that member in an approved superannuation fund or approved retirement scheme.- The Pensions (Superannuation Funds & Retirement Schemes) Act 2006

 Compulsory Retirement

When the employee must retire when he or she reaches a given age. Now prohibited under ADEA if based solely on age except for certain executives or where public safety outweighs individual protection (e.g. airline pilots). Also known as automatic or mandatory retirement.- www.ifebp.org

 Computer Language

A group of symbols numbers letters words or a combination of these that can be used to communicate with the computer and cause it to perform desired operations for processing data.- www.ifebp.org

 Conflict of Interest

A situation that provides potential for self-dealing. For example a trustee has a conflict of interest if he or she has an interest in a construction project to be financed by the plan the trustee represents.- www.ifebp.org

 Consultant

A person or firm offering expert business professional or technical advice to an organization for a salary or fee.- www.ifebp.org

 Consumer Price Index

The name given in the United States and Canada to the series of numbers whose ratios measure the relative prices at various times of a fixed market basket of goods and services that typify those bought by urban families. The CPI is a measure of inflation.- www.ifebp.org

 Contingent Annuity Option

An option under which an employee may elect to receive under certain conditions a reduced amount of annuity with the same income or a specified fraction to be paid after his or her death to another person designated as his or her contingent annuitant for that person’s lifetime. The contingent annuitant is usually the husband or wife. See also Automatic Survivor Coverage; Joint and Survivor Annuity.- www.ifebp.org

 Continuous Service

All creditable service rendered by a member without a break in service including periods of absence for which salary is paid or for military service.-wwwifebp.org

 Contract

A promissory agreement between two or more persons that creates modifies or destroys a legal relation. In general it must have the following elements: creates an obligation competent parties subject matter legal consideration mutuality of agreement mutuality of obligation must not be so vague or uncertain that terms are not ascertainable and generally is in writing signed by both parties.- www.ifebp.org

 Contribution

means a periodic payment to an approved superannuation fund or approved retirement scheme by a member or a sponsor.- The Pensions (Superannuation Funds & Retirement Schemes) Act 2006

 Contribution year

for the purposes of these Regulations means the income tax year;- National Insurance (Self-Employed Persons' Wage-Related Contributions) Regulations. 1973.

 Core Competencies

Integrated skill and knowledge sets that distinguish an organization and deliver value to customers.- www.ifebp.org

 Cost-of-Living Adjustment

An across-the-board increase (or decrease) in wages or pension benefits according to the rise (or fall) in the cost of living as measured by some index often the consumer price index (CPI).- www.ifebp.org

 Cost-of-Living Allowance

In expatriate compensation the amount by which base pay is increased or decreased to adjust for a geographic area’s cost of living.- www.ifebp.org

 Cost/Benefit Analysis

A comparison of the cost of an action with the economic benefits it produces through elimination of other direct and indirect costs.- www.ifebp.org

 Credited Earnings

The maximum taxable income for each year that forms the basis for contributory Public benefits - National Insurance Scheme (NIS) and National Housing Trust (NHT).

 Credited Service

A period of employment before or after the effective date of the plan that is recognized as service for one or more plan purposes such as determination of benefit amounts entitlement to benefits and/or vesting.- www.ifebp.org

 Critical Care

Health care provided to acutely ill patients during a medical crisis usually within a critical care area such as an intensive care unit or coronary care unit.- www.ifebp.org

 Currency Devaluation

Action by the government or by the marketplace to reduce the value of a currency in relation to the currencies of other nations.- www.ifebp.org

 Currency Exchange Rate

The price of one currency stated in terms of another currency by bankers dealers and financial markets. (Compensation) The rate of pay at which labour demand and labour supply functions intersect in the external market.- www.ifebp.org