Use our Jargon Buster to cut through the complicated language financial services companies sometimes use, and find out what it really means. The list is in alphabetical order so you can scroll down to look up words and their meanings:
Occupational Pension Scheme A pension scheme set up by an employer for its employees. It usually provides life insurance as well as pension benefits. The pension it pays out is usually based on a proportion of the employee's final salary, or on the amount paid in, together with investment growth (see Money Purchase). In respect of contributions, there are two kinds of occupational pension: contributory occupational pension schemes (employees pay into the pension fund as well as their employer) or non-contributory (the employer pays all the pension contributions into the fund).
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Open Ended Investment Companies (OEICS) An investment that enables shareholders to pool their money and split it into different sub-funds, often in different market sectors. The value of an OEIC is usually determined on a daily basis and divided into shares each with the same value.
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Open Market Option (OMO) The opportunity at retirement to take the value of your pension funds to shop around for the annuity which offers you the best rate for your circumstances, rather than taking the annuity with the original pension provider.
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Ordinary Rights The fund built up in an occupational or personal pension that does not arise from contracting out of the State Earnings Related Pension Scheme (SERPS) or the Second State Pension (S2P) (see also Protected Rights).
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Overlap This is where a dependant’s annuity begins on the death of the annuitant (I.e. the person who took out the annuity originally) within the annuity guarantee period. So it is possible that two annuities can be paid at the same time and this is known as overlap.
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Pearl Assurance Limited No. 1419, London Life Limited No. 1179800, NPI Limited No. 3725037 and National Provident Life Limited No. 3641947 are authorised and regulated by the Financial Services Authority. All companies are registered in England and have their registered office at: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG, Tel: 01564 204321. We may record or monitor telephone calls. Important Company Registration and Legal Information.
