• Office of Management and Budget
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OFFICE OF PENSIONS - GLOSSARY OF TERMS

Accumulated Contributions - The sum of all the amounts deducted from the compensation of a member and credited to his individual account, together with regular interest. Active Member - A person currently employed full-time or regular part-time for the State, the State Department of Education, a School District, the University of Delaware (excluding most faculty and designated professional staff), Delaware State University, Delaware Technical & Community College, Solid Waste Authority, Office of Disciplinary Council, Prothonotary's Office, a State Agency supported in whole or part by federal funds granted to the State Actuarial Assumptions - Estimates of future experience with respect to the rates of mortality, disability, turnover age at retirement, investment income, and salary trends. Estimates are made on past experience and modified based on conditions which will affect the future Actuarial Cost - The amount of funds presently required to provide future benefits. The actuarial value of the pension benefits to be derived from such service credits computed on the basis of the actuarial assumptions approved by the Board and the individual's attained age and final average compensation Actuarial Tables - Tables of mortality and rates of interest as shall be adopted by the Board in accordance with the recommendation of the actuary Actuary - A professionally trained person who estimates how much money must be contributed to a pension fund each year in order to support the benefits that will become payable in the future Administrator - If the executor named in a will does not wish to accept the position or if there is no will, the court appoints an administrator upon application to settle a probated estate Affidavit - A sworn written statement made on oath before a notary public After-Tax Contribution - A portion of a person's income that has already been taxed by the IRS that is contributed to a qualified plan Agency - Any governmental body employing persons in State service Alternate Payee - A former spouse who is recognized by a domestic relations order (QDRO) as having a right to receive a portion of the benefits under a plan with respect to the member Armed Services of the United States -This term includes the following: Army, Navy, Air Force, Marine Corps Before Tax Contributions – The portion of an employee's salary contributed to a retirement plan before federal income taxes are deducted; this reduces the individual's gross income for federal tax purposes Beneficiary - Named on the back of the Employee Actuarial Form (P-1 form) who receives a lump sum distribution of pension contributions in the event there is no eligible survivor for a pension Benefit Multiplier - A percentage that is multiplied by a member's final average compensation and total credited service to determine a monthly benefit Board of Pension Trustees - Established by Chapter 55, Title 29, Section 8308, and is responsible for the general administration of the Delaware Public Employees' Retirement System which has control and management of the state pension funds Claimed Service - Pre-employment Military service and Interrupting employment Military service Compensation – All regular salary and wages paid for work, including overtime. It also means amounts that would have been paid except for an election or a legal requirement, such as a garnishment. Lump-sum payments on termination are not included as compensation Concurrent Service - Where a member is employed by more than one agency, or where military or other creditable service overlaps with membership service. Service credit must be adjusted in such instances Consumer Price Index (CPI) - A statistical measurement prepared by the Bureau of Labor Statistics, a government agency, to measure changes in the price of goods and services bought by most people in the United States Contribution Rate - The percentage of the member's salary paid by the employee and the employer to the system to fund benefits Creditable Service - Periods of employment that are either earned, claimed, or purchased. This is used to determine both eligibility for retirement benefits and the amount of these benefits Custodian - The organization (usually a bank) that holds in custody and safekeeping the securities and other assets of a mutual fund or trust. The bank does not have fiduciary responsibility Defined Benefit Plan - This type of pension plan defines the amount of benefits to be paid, generally based on a formula which includes years of service and final average compensation Dependent Child/ren - Unmarried child or children either under age 18 or between age 18 and 22, and attending school on a full-time basis, or over age 18 but permanently disabled before age 18 Dependent Parent - Parent who was receiving one-half of his or her support from the member at the time of his/her death Early Retirement – A termination of employment involving the payment of a retirement allowance before a participant is eligible for normal retirement. The retirement allowance payable in the event of early retirement is often lower than the accrued portion of the normal retirement allowance Employee - A person employed on a full-time or annual basis or on a regular part-time basis, as defined in rules and regulations adopted by the Board [See Chapter 55, Title 29, Section 5501(a)] Employer - The State of Delaware or any of its departments, agencies, or subdivisions, from which any employee receives his compensation Employer Contributions - Employers contribute a percentage of covered wages into the Fund. This money is not refundable to the member or the employer if the member withdraws his/her contributions Estate - The assets of an individual comprising total worth Executive Secretary – Appointed by the Board of Pension Trustees and is responsible for determining the eligibility for retirement pension benefits for all state administered pension plans including the determination of eligibility for paraplegic veterans' benefits as provided for in Subsection 1001 of Title 20 Executor/Executrix - A person or an institution named by an individual in his/her will to settle his/her estate in accordance with the terms of his/her will Final Average Compensation - 1/36 of the compensation paid to an employee during any period of thirty- six consecutive months or any 36 months comprised of three (3) periods of 12 consecutive months in his/her years of credited service in which his/her compensation was highest Inactive Member - Refers to members who have previously contributed to the Plan and who still have an account the Plan although they are no longer employed or in a pension-covered position Joint-Survivor Annuity - A payment plan at retirement where a member accepts reduced benefits so that at the member's death a beneficiary will receive a lifetime monthly benefit. Under the SEPP, the reduction is 3% to provide a 75% survivor benefit Life Expectancy - The average number of years a member is expected to live according to actuarial tables Lump Sum Payment - A single payment for the purchase of membership service credit, or for the repayment of a refund Medical Committee - A group of physicians approved by the Board of Pension Trustees that is qualified to make disability recommendations to the Executive Secretary for disability pension determinations Medical Examination - The evaluation of a member's medical condition to assist in the determination of eligibility for a disability benefits Open Enrollment - A period during which subscribers in a health or dental insurance program have an opportunity to elect to participate in the program or to select an alternate plan being offered to them Other Professional Educational Employment (OPEE) - Service in professional educational employment performed for another State, a municipality in another State, the Federal Government, or an accredited private school or college anywhere in the world Pensioner Retirement Increases (PRI) - Pensioner increases granted after legislative approval Purchased Service – Service that may be purchased for credit. They include: Sabbatical leave, other Professional Educational Employment (OPEE), Military service, other Governmental service, Medical leave, and Personal leave Refund - A payout of the member retirement contributions, plus accrued interest, to a member or to the member's designated beneficiary Repayment - The replacement of withdrawn contributions and interest to restore membership service credit SEPP - State Employees' Pension Plan. Survivor - A person eligible to receive a monthly pension benefit in the event that the employee or pensioner passes away Vested/Vesting – The guarantee that you will receive a future benefit at retirement age after you work a certain number of years Waiver - A formal written statement relinquishing certain rights, claims, or privileges.

Last Updated: Friday, 28-Mar-2008 10:23:46 EDT