Glossary of Pension Terms and Phrases (C)

Here are a list of pension terms and pension phrases beginning with the letter C.

Capital Gains Tax

This is a tax levied on the investment gains of an individual in a tax year, provided those gains exceed the current exemption.

Cash Sum at Retirement

For the majority of people with a personal or occupational pension, an option at retirement is to forego an amount of pension for its equivalent in cash. The cash is paid tax free up to permissible levels.


A caveat means to give legal warning of an interest in a situation.

Central Bank

The main government controlled/influenced bank in a country, which controls the internal and external financial affairs of the country e.g. setting interest rates, controlling currency and foreign exchange rate. In the UK the Bank of England is the central bank.


Generally refers to the City of London; the square mile that is the heart of Britain's financial community.

Continuation Option

A number of occupational pension schemes may offer scheme members a chance to continue any life assurance benefit that may have been linked to the scheme, after they leave the scheme.

Contract Note

The confirmation documentation received when shares are bought or sold. It is used as proof of the transaction for tax purposes.


An alternative word to premium, usually used in connection with personal payments into a pension scheme.

Contribution Limits

Contributions into a pension are usually limited in some way. Those into occupational schemes are in effect limited by the maximum benefit rules. Contributions into personal pension plans are limited by payment ceilings related to age bands. Member contributions to an occupational scheme are fixed at a maximum of 15% of total taxable remuneration in any tax year.

Contribution Rate

This refers to the payments into group pension schemes which are dependent on a number of factors, such as ages, balance of sexes in the group and certain financial projections. Rather than change the payment level each time one of the assumptions changes, the scheme actuary will recommend a fixed rate to be paid for, say, three years. This will be the contribution or funding rate, and will usually be expressed as a percentage of the total payroll of all the scheme members.

Current Value

This is the spending power, in today's terms, of a cash sum available at a future date after allowing for projected inflation.