Browse terms

If you find a word or phrase on this site that you don’t understand, use this jargon buster to find out what it means. Click the first letter of the word or phrase.

Additional Voluntary Contributions (AVCs)

These are the Additional Voluntary Contributions you choose to pay, over and above 9% to enhance your retirement benefits. The Company will not match contributions in excess of 9%.

Annual Allowance (AA)

The overall limit on the amount of tax-efficient savings you can make in any single tax-year. The AA has been set at £40,000 for the 2018/19 tax year. You’ll be charged tax on any amount that exceeds the AA limit. The AA that applies to you might be different to the standard AA depending on your circumstances, for example if you meet certain ‘high earner’ criteria or if you start to withdraw from any of your pension savings outside of the Plan. You can read more about this on the HMRC website.


The Company's Salary Sacrifice scheme.

Cash Lump Sum

A tax-free cash sum that you can take as part of your Retirement Account (usually 25%).


Bayer plc and Bayer CropScience Limited, plus any associated or subsidiary companies.

Defined Benefit Section

(DB Section)

A scheme in which the benefits are defined in the scheme rules and accrue independently of the contributions payable and investment returns. Most commonly, the benefits are related to members' earnings when leaving the scheme or retiring, and the length of pensionable service. Also known as 'final salary' or 'salary-related' scheme.

Defined Contribution Section

A scheme in which the member builds up a pension fund in their name. Benefits at retirement are determined by the size of the member's fund and their personal circumstances. This is also known as a 'money purchase' scheme.
Dependant Those who are financially reliant on you including your spouse, civil partner or dependant children.
Earnings Cap

The Earnings Cap applies to all members who join the Plan on or after 1 June 1989. This is an upper limit on the earnings which can be used to calculate contributions to and benefits from the Plan. It may be increased each year in line with price increases.

Lifetime Allowance (LTA)

The total amount of pension savings that can benefit from tax-relief. The LTA is set at £1.3 million for the 2018/19 tax year. If the total of your pension savings exceeds the LTA, you'll have to pay tax on the excess.

Normal Retirement Age (NRA)

Normal Retirement Age is 65 years.

Plan Administrator

The company appointed by the Trustee to deal with the day-to-day administration of the Plan is BBS.

The Trustee

The Bayer Group Pension Plan is set up under a Trust. This enables the Plan to receive valuable tax advantages and also ensures the assets of the Plan are kept separate from the Company.

The Trust must then be managed by either a group of individuals known as Trustees or a Trustee Company, under which there will be Trustee Directors.

The Bayer Group Pension Plan is set up under a Trustee Company and under the current arrangements the Trustee board is made up of 6 Trustee Directors.

The Trustee of the Bayer Group Pension Plan must:

  • Act separately from the Company and hold the assets for the beneficiaries of the Plan;

  • Ensure that the Pension Plan is run properly and that members’ benefits are secure;

  • Ensure the Plan is run in accordance with the Trust Deed & Rules; and

  • Supervise and monitor the administration of the Plan.