DISABILITY: Disability may be permanent impairment (severe injury) or the permanent inability to perform the duties of your chosen or possibly a similar occupation.
DISABILITY COVER: Provides a lump sum if you are disabled. The lump sum is determined by the cover amount selected, the severity of the disability and the type of disability product selected.
DEFINED BENEFIT PENSION FUND: Under a defined benefit (“DB”) pension fund a member’s pension at retirement is calculated using a specified formula contained in the fund rules. It is usually based on a member’s total service to retirement, salary at retirement and an accrual factor which states how much pension is awarded for each year of service (expressed as a percentage of the member’s salary).
DEFINED CONTRIBUTION PENSION FUND: Under a defined contribution (“DC”) pension fund, a member’s retirement capital is equal to the member’s accumulated contributions over the member’s working life. This accumulated investment amount is used to purchase an annuity from an insurer to secure a pension for the member.
DEFAULT ANNUITISATION STRATEGY: This refers to the requirements of Regulation 39 of the Pension Funds Act which states that each retirement fund must have a default annuitisation strategy in place for its members. The objectives of such a strategy are defined within Regulation 39.