Glossary

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 Annual Contributor

this refers to tax-deductible and tax-deferred contributions to an approved retirement savings plan during the months of January to December.

 Annual report

An insurer's published statement to its policy owners giving pertinent financial information and reviewing the year's activities and results.- The Insurance Dictionary 3rd Edition

 Annual return

An IRS (in Jamaica - an Income Tax form) form required yearly of every employer who maintains a pension annuity or profit-sharing plan including a Keogh that contains information with respect to the qualification financial conditions and operations of the plan.- The Insurance Dictionary 3rd Edition

 Annuitant

One to whom an annuity is payable or a person who receives an annuity for life or for a specified period.- The Insurance Dictionary 3rd Edition

 Annuity

a contract which is sold by life insurance companies that guarantee a fixed or variable payment to an Annuitant (individual) at some time in the future - usually for disability old age and upon death a lifetime income to your heirs. An annuity is sometimes referred to as 'an individual receiving a pension'. For example Miss Jones or Mr. Smith is receiving a pension is the same as if you had said they were receiving an annuity payment. When an annuity is being purchased the annuitant has the option to purchase a contract which provides for Immediate or Deferred income payments. All approved retirement savings Plans such as Superannuation Funds Retirement Schemes Retirement Benefits Scheme Public Sector Pension Plans and National Insurance Scheme (NIS) must pay the benefits for disability old age and upon death to the beneficiaries in the form of an annuity. There are 3 main classes of annuities. These are Straight Variable Instalment Refund Flexible and Indexed. For each type there are options to choose from such as joint and survivor last survivor etc. Before you purchase an annuity you should review your own monthly expenses needs and select the OPTION that best meets YOUR needs.

 Annuity consideration

The payment or one of the regular periodic payments an annuitant makes for an annuity.- www.ifebp.org Glossary

 Annuity contract

A contract in which an insurance company unconditionally undertakes a legal obligation to provide specified pension benefits to specific individuals in return for a fixed consideration or premium. An annuity contract is irrevocable and involves the transfer of significant risk from the employer to the insurance company. Annuity contracts are also called allocated contracts. - www.ifebp.org Glossary

 Annuity Fixed

An annuity that provides fixed payments during the annuity period.- The Insurance Dictionary 3rd Edition

 Annuity Joint and Survivor

A pension plan provision in which based on the age of a designated survivor (usually one’s spouse) a reduced pension is paid as long as one of the two parties is living.- www.ifebp.org Glossary

 Annuity starting date

The first day of the first period for which an amount is received as an annuity.- www.ifebp.org Glossary

 Annuity Straight

Also known as an annuity life. An annuity contract that agrees to pay a guaranteed income for life but makes no provision for the return of the unused portion after death. Note: This type of annuity is based on a payment to the annuitant ONLY and therefore no beneficiary data is required at the time of completing an application. - The Insurance Dictionary 3rd edition

 Appeal Tribunal

means the Appeal Tribunal established under the Financial Services Commission Act- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 s2

 Appointed day

means the day Appointed under section1- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 s2

 Approved fund

means a fund constituted in a manner approved by the Minister for purposes so approved and declared by the Minister to be an approved fund:Provided that no sum in respect of which no income tax is payable by reason of its being part of an approved fund shall be used for any purposes other than purposes approved by the Minister.- The Income Tax Act 1955 s2

 Approved Retirement Scheme

means a Scheme, not being a specified pension scheme- (a) to which persons who are self-employed or who are not active members of an approved Superannuation Fund- (i) make contributions toward a pension; (ii) transfer their pension benefit

 Approved Retirement Scheme

means a Scheme not being a specified pension scheme-(a) to which persons who are self-employed or who are not active members of an approved Superannuation Fund- (i) make contributions toward a pension; (ii) transfer their pension benefit

 Approved Superannuation Fund

means a fund, not being a specified pension fund - (a) whereby contributions toward pensions are made by employers on behalf of employees; and (b) which is approved and registered by the Commission;

 Approved Superannuation Fund

means a fund not being a specified pension fund - (a) whereby contributions toward pensions are made by employers on behalf of employees; and (b) which is approved and registered by the Commission;

 Auditor

means a person who -(a) is a registered public accountant as defined in section 2 of the Public Accountancy Act; 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

 Bull Market

An advancing stock market. The opposite of bear market.- www.ifebp.org

 Business Continuation Insurance

When a partner dies or is disabled the remaining partners are provided with the funds to purchase that partner’s interest in the firm. See also Key Employee Insurance.- www.ifebp.org

 Business cycle

Four basic stages of the U.S. economy as follows: Expansion--The economy strengthens as business activity accelerates. Peak--The economy overheats causing inflation and interest rates to rise. Recession--Higher interest rates lead to waning business activity and a contracting economy. Trough--Declining inflation and interest rates spark the beginnings of an economic rebound.- www.ifebp.org

 Business judgement rule

A judicial doctrine offering protection to corporate officers and directors from personal liability for their actions as long as they were taken in good faith and with reasonable care.- www.ifebp.org

 Call centre

A telephone call centre used to provide on-demand tracking routing and reporting of employee benefit questions. Computer telephony integration can instantly provide relevant information about the caller and speech recognition allows callers to verbalize their requests. The latest developments in call centres include systems for e-mail management. See also Employee Self-Service.-www.ifebp.org

 Call date

The earliest date on which a bond may be redeemed before maturity at the option of the issuer.- www.ifebp.org

 Call option

An option to buy a specified number of shares at a definite price within a specified period of time.- www.ifebp.org

 Call price

The price at which a corporation or other obligor is permitted to redeem securities containing call provisions. To compensate for this privilege a price above par is usually paid.- www.ifebp.org

 Career Average Pay Formula/ Career Average Plan

A career average pay formula is a defined benefit plan formula that bases benefits on the employee’s compensation over the entire period of service with the employer. A career average pay plan is a plan with such a formula.- www.ifebp.org

 Cash Flow

The reported net income of a corporation plus amounts charged off for depreciation depletion amortization and extraordinary charges to reserves which are a bookkeeping deduction and not paid out in actual dollars and cents.- www.ifebp.org

 Cash Refund Annuity

A form of annuity under which any excess contributions and interest over the total of annuities actually paid are refunded after the annuitant’s death to a designated beneficiary of his or her estate. Two types are cash refund annuity (unliquidated purchase price is refunded in a lump sum at the time of the annuitant’s death) and installment refund annuity (monthly payments are continued to the beneficiary until the full cost has been received).-www.ifebp.org