Additional Voluntary Contributions (AVCs)

These are any personal contributions that you choose to pay to the DB Section.

Annual Allowance

This is a limit on the amount of pension savings that you can build up that may qualify for tax relief in any tax year.

Automatic Enrolment

The requirement to enrol most employees and workers in the UK into a pension scheme provided by an employer.

Civil Partner

This is the person you have entered into a registered Civil Partnership with under the Civil Partnership Act 2004.


The Prudential Assurance Company Limited or any associated company / employer that offers you membership of the Scheme through your contract of employment.

Consumer Price Index (CPI)

The official index used by the Government as its measure of inflation. The Government previously used the Retail Price Index as its official index for measuring inflation.

DB Section

The Defined Benefit Section of The Prudential Staff Pension Scheme.

DB Section benefits

The benefits payable to you as a result of your membership of the DB Section (and/or those payable to your Spouse/Civil Partner or other Dependant(s) following your death) but excluding any benefits payable in respect of AVCs.

DC Section

The Defined Contribution Section of The Prudential Staff Pension Scheme.


Your Spouse/Civil Partner or any other person who, in the opinion of the Trustee, is financially dependent upon you at the date you take your pension or die.

Eligible Child

In most cases, this means your own or adopted child under age 18 or older if still in full-time education/vocational training and the Trustee so decides (though not normally beyond age 23).

Final Pensionable Earnings

In summary, for the purposes of the DB Section, Final Pensionable Earnings is calculated as the higher of either:

1. The basic salary you earned in the 12 months immediately before you leave Service. Ignoring any additional amounts, such as bonuses or overtime.

2. Your highest annual salary in any one tax year, in the last five years before you leave Service. Ignoring any additional amounts, such as bonuses or overtime.

3. Your average annual salary over the best three consecutive tax years in the last 10 years. Ignoring any additional amounts, such as bonuses or overtime.

The earliest tax year which will count in points 2 and 3 above is that commencing 6 April 2000.

If you participate in the Company’s Pensions Plus arrangement, for these purposes, you are treated as if you do not participate in that arrangement.

There are occasions when your Final Pensionable Earnings may be calculated differently. If you have any questions about this definition, please contact the Administration Team in the first instance.

An example of a Final Pensionable Earnings calculation can be found in the Member Booklet.

GMP Pension Age

This is currently 60 for women and 65 for men.

Guaranteed Minimum Pension (GMP)

If you were an Active member of the DB Section between 6 April 1978 and 5 April 1997 (inclusive), you will have accrued a GMP within the Scheme. This is the minimum pension the Scheme must pay to you as a result of you contracting out of either the State Earnings Related Pension Scheme (SERPS) or the Second State Pension (S2P).

  • Contracting out -  In return for you and the Company paying a reduced level of National Insurance contributions, you stopped building up your second tier State Pension entitlement. The Scheme committed to pay this amount to you as part of your overall Scheme entitlement.
  • State Earnings Related Pension Scheme (SERPS) - From 6 April 1978 to 5 April 2002 this was the second tier of State Pension. In addition to your Basic State Pension the State would pay an additional pension based on your earnings during any period you were not contracted out.
  • Second State Pension (S2P) - In 2002 the Government replaced SERPS with S2P. The principles were broadly the same in that S2P was a second tier of State Pension provision based on your earnings during any period you were not contracted out.

With effect from 5 April 2016, the Government abolished the two-tier State Pension provision in favour of a single-tier flat-rate State Pension.

Lifetime Allowance

This is a limit on the amount of pension benefits that you can accumulate in the Scheme and any other registered pension scheme during your working life which will qualify for tax relief.

Money Purchase Annual Allowance

If you elect to take your benefits from any other registered pension arrangement using the new pension flexibilities available, for example in the form of an Uncrystallised Funds Pension Lump Sum (UFPLS) you will trigger, for the tax year you draw your benefits (and for future years), a Money Purchase Annual Allowance. This means your tax efficient contributions to any defined contribution scheme will be more restricted (usually to £4,000).

Normal Retirement Date

The date at which you are expected to retire. For most members your Normal Retirement Date is age 60 although it is age 65 for some male members. You will have been told if your Normal Retirement Date is not age 60. Your Normal Retirement Date is sometimes referred to as your Normal Pension Date.

Pension Input Period

This is the period over which pension contributions are measured to work out whether you have exceeded the Annual Allowance. The Pension Input Period is the same as the tax year: 6 April to 5 April.

Pensionable Pay (in respect of the DC Section)

This means your basic salary.

Pensionable Service

In general, this means the permanent Service (in years and complete months) you completed with the Company as an Active member of the DB Section.

Pensions Plus

The Company operates a salary sacrifice arrangement called Pensions Plus, for more information please see the Company’s document Your Guide to Pensions Plus or visit

Qualifying Recognised Overseas Pension Scheme (QROPS)

This is an overseas pension scheme that meets certain requirements and which HMRC recognises as eligible to receive transfers from registered pension schemes in the UK.

Registered pension scheme

A pension scheme that is registered with HMRC under the provisions of the Finance Act 2004.


The Prudential Staff Pension Scheme.

Scheme Actuary

An appropriately qualified individual who advises the Trustee on actuarial matters relating to the Scheme.


Your employment with the Company.


This is the person to whom you are legally married.  This includes opposite sex spouses and same sex spouses.

Spouse GMP (SGMP)

The minimum pension the Scheme must pay to your Spouse/Civil Partner as a result of you contracting out of either the State Earnings Related Pension Scheme (SERPS) or the Second State Pension (S2P).

Please see the definition in this glossary for Guaranteed Minimum Pension (GMP) for further information.

State Pension

The pension you may receive from the State when you reach the State Pension Age.

State Pension Age

The age at which your State Pension becomes payable.


Prudential Staff Pensions Limited, a limited company, is the Trustee of the Scheme and is responsible for ensuring that the Scheme is administered in accordance with the Trust Deed and Rules. The Trustee holds, manages and invests assets for the benefit of members and their beneficiaries.

Trustee Director

The Company appoints the Trustee Directors and the Trustee Directors collectively form the Trustee Board. Trustee Directors are individuals appointed to the Trustee Board and can be chosen for appointment by either the Company or the members.