The benefits for service already completed.

Accrued Pension is the amount of pension you have earned in respect of your Pensionable Service up to the date of your retirement, or leaving the employment of the Company if earlier. It is based upon your Final Pensionable Salary and the deduction in respect of the State Pension Allowance at that date.

Active Member is an employee who has elected to join the Plan and is contributing to the Plan and who has not become a Deferred Pensioner or Pensioner. The Plan has now closed to future contributions and so has no Active Members.

Additional Voluntary Contributions (AVCs) are additional payments made by a member to top up the benefits provided by the Plan. A separate AVC facility is operated by the Trustee for such additional saving. Details are available from the Pensions Administrator.

The day-to-day running of a pension scheme, eg collection of contributions, payment of benefits, record-keeping.

The administrator for the Scheme is Isio Group Limited.

Anniversary Date is April 6th in any year.

An amount against which an annual increase in benefits is tested to determine whether a tax charge arises for the individual.

Additional voluntary contribution. Contributions over and above a member's normal contributions if any, which the member elects to pay to an occupational pension scheme in order to secure additional benefits. A legal requirement until 2006, but still offered by many schemes.

Basic Annual Salary is the annual rate of your basic salary or wage plus the annual rate of shift premium and any childcare vouchers (if applicable). In this definition, basic salary or wage will also include regular work related allowances such as Leading Hand or Trainer. However, it will not include any overtime or bonus payments of any type. It is usually the rate you are earning on April 6th each year.

Basic Component is an amount equal to the current full basic State Retirement Pension for a single person at the effective date used in the calculation of the State Pension Allowance

Commutation factors dictate the extent to which pension benefits are increased or reduced by late or early retirement. They also determine the relationship between the lump sum taken (if any) and the level of the remaining pension.

Commonly used to describe a scheme which is not contracted out of the State Second Pension (S2P, previously SERPS) – ie where the members continue to be entitled to S2P.

Commonly used to describe a scheme which provides benefits in place of the State Second Pension (S2P, previously SERPS). Currently these benefits from the scheme are paid for by means of a rebate of the relevant NI contributions.

Defined benefit scheme. A scheme in which the benefits are defined in the scheme rules and accrue independently of the contributions payable and investment returns. Most commonly, the benefits are related to members' earnings when leaving the scheme or retiring, and the length of pensionable service. Also known as 'final salary' or 'salary-related' scheme.

Defined contribution scheme. A scheme in which a member's benefits are determined by the value of the pension fund at retirement. The fund, in turn, is determined by the contributions paid into it in respect of that member, and any investment returns. Also known as 'money purchase' scheme.

A member entitled to a deferred pension (sometimes known as 'preserved benefits').

A benefit accrued by an individual who was a contributing member of the Plan but who has subsequently ceased pensionable service by either leaving the employment of the Company or choosing to opt out of the Plan.

Deferred Pensioner is a member of the Plan who has a deferred pension entitlement after ceasing active membership of the Plan by either leaving the employment of the Company or choosing to opt out of the Plan.

Dependant Child is normally a child who at the date of a member’s death was: a) under age 18, or under age 25 if receiving full-time educational or vocational training approved by the Trustees, or b) any age if in the opinion of the Trustee, the child is mentally or physically disabled. However, a child (including an adopted child) of a marriage/civil partnership entered into after retirement or ceasing to be an Active Member is excluded.

The disclosure requirements cover the information, which trustees are obliged to provide, about a scheme and the benefits for individuals. Some of this information must be given to evidence automatically, and other aspects of it must be provided on request.

Final Pensionable Salary means the highest average Pensionable Salaries on any three consecutive anniversary dates during the last ten years of active membership (or such shorter period completed whilst an active member). Where pensionable service is less than three years, Final Pensionable Salary is taken as the annual average of pensionable salaries during the whole period of active membership.

See DB scheme.

HM Revenue & Customs

Internal disputes resolution procedure. The written procedure to deal with disputes between beneficiaries on the one hand and trustees on the other, which occupational pension schemes are required to put in place.

An amount introduced by HM Revenue & Customs as part of the Finance Act 2004 against which retirement and death benefits will be tested, once they are brought into payment, to determine whether an additional tax charge will be levied.

Normal Retirement Date (NRD) is your 65th birthday.

Established to pay compensation to members of eligible defined benefit pension schemes, whose sponsoring employers become insolvent. The PPF is funded by a levy on all eligible DB schemes. The PPF became operational on 6 April 2005.

In relation to an active member at a given date means your “Basic Annual Salary” as at the previous 6 April (or date of joining the Plan, if later) unless you are in receipt of disability allowance as at an Anniversary Date in which case, Pensionable Salary means such “Basic Annual Salary” as the Principal Employer shall notify to the Trustees as being the “Basic Annual Salary” which in the opinion of the Principal Employer would have been applicable to you on the Anniversary Date if you had not been in receipt of disability allowance.

Pensionable Service is your service with the Company as an Active Member of the Plan. It is calculated in complete years and months.

Pensioner is a person receiving a pension from the Plan. This does not have to be an ex-employee as spouses, civil partners and Dependant Children in receipt of a pension following the death of a member of the Plan also qualify as Pensioners.

The day-to-day running of the scheme, including the collection and allocation of contributions, the routine calculation of the benefits of individual members on retirement, in deferment, on death or ill-health. It also includes the maintenance of accurate and up-to-date member records and the management of operational risks.

Regulates work-based pension schemes in the UK.

Benefits arising on an individual ceasing to be an active member of an occupational pension scheme, payable at a later date (eg a member who leaves that employment before retirement date).

Prospective Pension, is, if you die in the employment of the Company whilst an Active Member, the pension that would have been payable had you survived and remained in employment until Normal Retirement Date at the same level of Final Pensionable Salary as at the date of death but with an adjustment to the formula for calculating the prospective State Pension Allowance.

Means the general index of retail prices (all items) published by the Office for National Statistics or, where that index is not published, any substituted index published by that Office (or its successor).

Pension builds up at the rate of 1/60th of Final Pensionable Salary for each year of Pensionable Service less the State Pension Allowance (i.e equal to 1/44th of the estimated State pension you accrue while an Active Member of the Plan). With Company consent, you may take a tax-free lump sum and a reduced pension if you wish when you retire. There are also provisions for early and late retirement.

Retail Prices Index. The index of retail prices (for all items) published by the Office of National Statistics, which is used to determine the rate of inflation over the previous 12 months. Increase to state pensions and index-linked gilts are equal to the rate of change in the RPI, while increases to private pensions in payment are dependent on the rate of change in the RPI.

State Second Pension. The earnings related element of the state pension scheme which has replaced the State Earnings Related Pension Scheme (SERPS) to enhance the basic state pension.

Your annual fixed salary and fixed allowances deemed pensionable by the Baxter Healthcare Pension Plan.

A booklet for members which should clearly set out the benefits offered by the scheme and how the scheme is run. The scheme booklet for the Baxter Plan can be downloaded from this website or requested from the Plan’s administrator.

Means in relation to any individual his wife or husband under a legally binding marriage or, if applicable, his widow or widower and, for the avoidance of doubt shall not include a "common law" partner. Spouse shall, for the purposes of the Scheme, include the Civil Partner of an individual (except where otherwise stated) and any reference to marriage or equivalent shall include a civil partnership.

State Pension Allowance is an amount used in the calculation of your Plan pension. It is applied as a deduction to your Plan’s 60th scale pension of an amount which is broadly equivalent to the amount of the basic state pension and state second pension (formerly the State Earnings Related Pension Scheme (SERPS)) that you accrue during Plan Pensionable Service.

A sum of money available to pension scheme members at retirement in exchange for a reduction in pension payments. It is currently paid free of tax.

See Pensions Regulator.

The Pensions Advisory Service. An independent organisation which gives free advice to the public about occupational or personal pension scheme. It does not give financial advice or advice on state scheme benefits. Formerly known as the Occupational Pensions Advisory Service (OPAS) when its remit was restricted to occupational pensions.

The amount of money which a scheme will pay to another pension arrangement in lieu of benefits which have accrued to a member. Sometimes referred to as a CETV (cash equivalent transfer value).

The conversion of a pension, which is below a prescribed level, into a cash sum (commutation).

A legal document, executed in the form of a deed, which establishes, regulates or amends a (pension scheme) trust.

Upper Earnings Limit (UEL) is the limit used for determining the rate of National Insurance contributions. This is set by the State, usually on an annual basis.