Dictionary

Annual allowance

This is the yearly amount of tax efficient pension savings you can build up in registered pension schemes – either inside or outside the Unilever UK Pension Fund – before a tax charge arises (the 'annual allowance charge'). (A 'registered pension scheme' is one which is registered with HM Revenue and Customs under the Finance Act 2004.)

Dependant

This can mean anyone who (in the Trustees' opinion) wholly or partly depends on you either for financial reasons, or because of a permanent disability.

Final pensionable salary

For most members, this is your pensionable salary over the 12 months before you left. It may also include any fluctuating pensionable salary you received normally averaged over the three-year period before you left.

Guaranteed Minimum Pension ('GMP')

Because the plan was "contracted out" of the second level of State benefit, it must provide a certain level of pension in its place. For pension you built up before 6 April 1997, this level was the GMP.

Inflation

This is the general rise in prices, normally measured by the 'Retail Prices Index' – a figure taken from measuring how costs increase across a range of goods and services.

Lifetime allowance

This is the total amount of tax-approved benefits you can build up over your working life before a tax charge arises (the 'lifetime allowance charge')

Lower earnings limit

The lower earnings limit is an amount roughly equal to the basic State pension. It normally increases each April. You do not pay National Insurance, or pension contributions, on any salary below this limit.

When you retire, 1/80 of the lower earnings limit for each year of pensionable service is taken away from your pension. This allows for the basic State pension you would start receiving at State pension age, if you have paid enough National Insurance contributions.

Normal retirement age

This is age 65 for men and women.

Pensionable salary

This was normally your basic pay, but may have included other earnings from time to time (your employer will tell you if this applies to you).

If you took part in the Unilever Contribution Arrangement your pensionable salary was based on your pay before it was reduced.

Pensionable service

This was the length of time you were a plan member, including any period you were in the Unilever Superannuation Fund, in years and months (worked out when you left to the nearest month), plus any service credits you bought or received. Pensionable service is normally restricted to 40 years.

Unilever

Unilever is the Unilever Group company that employs you and has agreed to take part in the Unilever UK Pension Fund. But, in some places in this website it means Unilever PLC.

Unilever Contribution Arrangement

This is the normal way of making contributions to the plan. If you took part in the Unilever Contribution Arrangement, instead of you paying contributions from your salary, Unilever paid an amount equal to what your contributions would have been straight into the plan. You agreed that your pay was reduced by the same amount. In this way, you and Unilever made savings on the National Insurance that would have been payable if you had made the contributions yourself.