Additional State Pension

Also known as the State Earnings Related Pension (SERPs) and the State Second Pension, the Additional State Pension is an extra amount of money you could get on top of your basic State Pension if you’re:

• A man born before 6 April 1951
• A woman born before 6 April 1953

As a member of the Plan, you were contracted-out of the Additional State Pension. This meant that you and the Company paid lower National Insurance Contributions (NICs) at that time. Prior to the 6 April 2002 this was called the State Earnings Related Pension Scheme (SERPS), and since then it has been called the State Second Pension (S2P).

For members who joined the Plan before the 6 April 1997, the Plan must provide a pension at GMP Age (60 for women and 65 for men), at least equal to the pension that would have been provided under SERPS for the period to the 5 April 1997, had you not been contracted-out. That’s why it’s treated differently from the rest of your pension and is increased separately.

Additional Voluntary Contributions

An extra pension contribution that can be built up alongside your pension benefits in the Plan.

Annual Allowance

This is the amount your pension savings can grow in a year before being subject to a tax charge. It’s a limit set by the government and applies to all registered pension schemes.

Annuity

An income paid for the rest of your life, which can be bought from an insurance company.

Consumer Prices Index (CPI)

A measure of the change in the price of a basket of consumer goods, expressed as a percentage.

Consumer Price Index including Housing (CPIH)

This is effectively the same as CPI except that it includes the cost of living in and maintaining one’s own home.

Defined Benefit (DB)

A type of pension that is worked out with a formula based on:

• how long you’ve been a member of the Plan,
• which section of the Plan you are in (section IV member or an Executive member), and
• the salary you’ve earned.

A defined benefit pension promises a specific income at retirement.

Defined Contribution (DC)

A type of pension where contributions from you and your employer are invested to provide a pension in retirement.

The pension in retirement depends on the amount you and the company pay in, the investment performance and how you choose to take your pension in retirement. 

Deferred pension

A pension benefit which you are no longer building up but have not yet decided to receive. 

Guaranteed Minimum Pension (GMP)

The minimum pension a company scheme has to provide to members who were contracted-out of the Additional State Pension, under SERPS for the period to 5 April 1997.

Lifetime Allowance

The limit to the amount of pension that can be paid out tax-efficiently over a lifetime.

Normal Retirement Date

Your 65th birthday for members of the Molson Coors (UK) Pension Plan (60th birthday for Executive members and some others with a special Normal Retirement Date).

Retail Prices Index (RPI)

A measure of inflation based on the change in the cost of a sample of retail goods and services, expressed as a percentage.

State Pension

A regular payment made to people by the government once they reach State Pension Age.

Trustee

An individual who is legally responsible for making sure a pension plan is run in line with its rules and must act in all members’ best interests.