Glossary
Active Member
A member of the Scheme, currently employed by DXC, making contributions and building up benefits.
Additional Voluntary Contributions
Any contributions you choose the make above the standard level of contributions within your pension scheme.
Annual Allowance
A limit set by the Government on the amount by which your pension benefits and/or pension savings can grow in any one tax year before being subject to tax. The current Annual Allowance is shown on the HM Revenue & Customs website.
Annuity
An insurance contract that you can enter into at retirement to buy a pension for life (regular guaranteed income) with your Defined Contribution pension savings.
Cash
Bank deposits and other money market investments.
Company
DXC and, where appropriate, any company or firm that takes part in the Scheme
Corporate Bonds
A bond with a fixed interest rate issued by a company for a fixed period of time.
Deferred Member
A member of the Scheme, no longer employed by DXC.
Deferred Pension
A benefit relating to the past service of members of an occupational pension scheme who are no longer active members but have not yet retired. The benefits are payable at retirement or earlier death.
Defined Benefit (DB) scheme
A type of pension scheme where the amount you receive at retirement is worked out based on a formula e.g. based on your earnings and length of service as a member of the scheme. It’s sometimes called a ‘Final Salary’ scheme.
Defined Contribution (DC) scheme
A type of pension scheme where your own contributions and your employer's contributions are both invested and the proceeds used to buy a pension and/or other benefits at retirement. It’s sometimes called a ‘Money Purchase’ scheme.
Dependant
Can be anyone whom the Trustee considers is wholly or partially dependent on you at the time of your death. Dependants can be adults including unmarried partners with whom you live, or children.
Employer
The company within DXC that employs you.
Equities
Shares in a company which are bought and sold on a stock exchange. Owning shares makes shareholders part owners of the company in question and usually entitles them to a share of the profits (if any).
Final Salary Scheme
See Defined Benefit scheme.
Gilts
Bonds issued by the UK Government, which have a fixed interest rate. If they are index-linked, the value of the gilts increases each year with inflation, which has the effect of increasing the amount of the interest paid.
Income Drawdown
A facility that you can enter into at retirement which allows you to keep your pension pot invested as your choose, but you can still have access to it and withdraw money from it over time.
Member Account
On joining or being automatically enrolled into the DC section, a Member Account will be opened in your name. Yours and the Company’s contributions will be paid into this account.
Lifestyle Investment Programme
Your Member Account is invested in funds that reflect how much time you have before retirement. In the early years, the focus is on generating higher returns by investing in a fund with more exposure to equity markets. Then, as you approach retirement, the Lifestyle option becomes more conservative, by gradually moving your Retirement Account to bonds and cash. This happens automatically – there is no need for you to do anything.
Lifetime Allowance
This is a limit on how much you can build up in tax-favoured pension savings across all of your pension arrangements (DB and DC) over your lifetime. Find out more about the Lifetime Allowance on the Government's website.
Minimum Retirement Age
The earliest age from which you can start to take your pension benefits (unless you are retiring due to ill health) is currently 55. It will increase from 55 to 57 on 6 April 2028.
Money Purchase Annual Allowance
Once you have accessed any of your DC pension savings flexibly you will only receive tax relief on any further contributions to DC arrangements up to £4,000 each year. Any contributions made by you or on your behalf by your employer that exceed this annual amount will be subject to a tax charge.
Money Purchase Scheme
See Defined Contribution scheme.
Normal Retirement Age
The date the Scheme Rules say a member would normally retire and start to receive their benefits from the Scheme. This is currently your 65th birthday.
Pensionable Salary
The salary used to calculate the standard contributions paid to your Member Account (only for DC). Your Pensionable Salary will be your Basic Salary or a greater amount as agreed between the Company and you.
Pensionable Service
The time you have been employed by the Company (or another eligible employer) and have been an active member in the Scheme.
Pensioner
A person who is currently receiving a pension from a pension scheme.
State Pension Age
The Government has announced that the State Pension Age (SPA) will go up for both men and women. Find out find out when you will be able to take your State pension on the Government’s website. This change doesn’t affect when you can start to receive your pension from the Scheme, but you may want to bear it in mind when making or reviewing your retirement plans.
Target Retirement Age
The date at which you have told us that you would like to retire, and will be used as the target for the Lifestyle Strategy in the DC Section.
