active deferred member

Someone who was in seagoing employment with a participating employer on 31 May 2001 (when the Fund closed to future accrual) and is currently still in seagoing employment. Also known as an ‘Employee member’.

administration team

The team that is responsible for day-to-day running of the Fund, which includes collecting contributions, paying benefits and keeping accurate member records.

annual allowance

The limit on what you can save tax efficiently in pension schemes every tax year, including employer contributions and AVCs. Any savings over the annual allowance is subject to charges from HM Revenue & Customs.

automatic enrolment

The process of enrolling employees into a pension scheme, if they meet government-set criteria. Automatic enrolment has been in place since 2012, and is to help more people save for their retirement so they don’t have to rely on just their State Pension.


Someone who may be eligible to receive benefits from the Fund in the event of your death, such as a spouse, partner or children.


What you (or your beneficiaries) are entitled to receive from the Fund, in the form of regular monthly payments and/or lump sums.

civil partner

The person to whom you are legally in a civil partnership at the time of death.

commutation factors

Used to calculate any lump sums due when you retire.

consumer prices index or cpi

An index of UK price inflation. Some elements of your pension benefits may increase in line with CPI when it is in payment.

defined benefit or db pension scheme

A type of pension scheme that calculates the benefits due based on your length of service and your earnings. Sometimes referred to as a salary related scheme.

The MNRPF is a DB pension scheme.

deferred Member

Someone who has left seagoing employment and therefore pensionable service in the Fund but hasn't taken their benefits yet.

deferred benefits

The benefits built up to a deferred member’s date of leaving pensionable service in the Fund. The benefits will remain with the Fund until the member retires or transfers them elsewhere.

expression of wish

How you tell the Trustee who you want to receive any benefits that may be due if you die.

guaranteed minimum pension or gmp

The GMP is effectively a proportion of the State Pension that the Fund has to pay a member if they were contracted out of the State Earnings Related Pension Scheme (SERPS) before 6 April 1997. While someone was contracted out of SERPS, they weren’t building up State Pension, so a broadly equivalent pension amount is paid by the Fund instead.

hm revenue & customs or hmrc

HM Revenue & Customs determines the tax rules that apply to pension schemes.

internal disputes resolution procedure or idrp

A formal procedure that all pension schemes are required to have in place and is designed to resolve disputes between members and the Trustee. An IDRP is usually used if there is a complaint that can’t be resolved by the Administration Team.

independent trustee

An individual or company who performs the duties of a Trustee Director but has no other direct or indirect involvement with the Fund or its advisers, the participating employer or the members.

lifetime allowance

The limit on the overall value of your pension savings in all schemes (except your State Pension) before being subject to tax charges from HM Revenue & Customs.

lump sum

Also known as a Pension Commencement Lump Sum (PCLS) or tax-free cash, this is an amount you may be able to take at the time you retire. Most people will have the option of taking up to a maximum PCLS with a reduced pension.


National Insurance contributions.

normal Pension Age or npa

The age at which you can retire from the Fund without your benefits being reduced for early payment. For the Fund it is usually age 62, but may be different for some members.

participating employer

An employer who contributes or has contributed to the Fund and has been admitted to participate in the Fund under the Trust Deed and rules.

pensionable service

This is the amount of time you have been a contributing member of the Fund. This is measured in months and complete days.

pensioner member

A person who is currently receiving a pension from the Fund.

pensions in payment

Pensions that are currently being paid.

state second pension or s2p

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


State Earnings Related Pension Scheme (replaced by S2P)


The person to whom you are legally married at the time of death.

Step-up Pension

An addition to your pension benefit at a given age. Your pension scheme calculates the amount to be added to your pension and should explain to you the reason for the Step-up.

transfer value

Sometimes referred to as a Cash Equivalent Transfer Value or CETV, this is the cash value of your pension benefits if you wanted to transfer it to another pension provider.

trivial commutation

If the value of your pension benefits is below a certain level when you retire, you might be able to take the entire value as a one-off lump sum.


A legal entity governed by specific terms and conditions and run for the benefit of members of its beneficiaries. Money placed in the trust is held separately to the assets and liabilities of the participating employers.

The Trustee Board

A trustee company called the Merchant Navy Ratings Pension Fund Trustees Ltd. This trustee company has a Board of Directors which is referred to as the Trustee Board, and the Directors are referred to as the Trustee Directors.

Trustee Directors

There can be up to twelve Trustee Directors on the Trustee Board, comprising: