Investor Education

Investor Glossary

Terms beginning with 'D'

A long term debt obligation that gives the lender only a general claim against the borrower’s assets. In a default the debenture holder has no claim against any specific assets.

Debt securities
Bonds and similar securities that call for the payment of interest until maturity and principal at maturity.

Deferred (Vested) Pension
A specified pension determined at the time of termination of employment or termination of a plan but not payable until some later date.

Deferred Annuity
An annuity which commences from a future date.

See also: Annuity,

Deferred Members
Terminated employees who are eligible for preserved benefits.

Deferred Vested Pensioner
A former Member of the Plan who has ceased employment with the Employer prior to his Early or Normal Retirement Date and has a vested right to a deferred vested pension payable from his Early or Normal Retirement Date.

Defined Benefit Plan
A Pension Plan where the Plan Rules define the benefits independently of the contributions payable, and benefits are not directly related to the investments of the plan. The employer bears the investment risk.

Defined Contribution Plan
Also known as a Money Purchase Scheme; a plan where benefits are determined by individual member’s benefits with reference to contributions paid into the Pension Plan, along with the investment returns on those contributions.

A person who is financially dependent on a member or pensioner, or was so at the time of death or retirement of the member or pensioner.

A deduction from income that allocates the cost of fixed assets over their useful lives.

Lowering of the value of a country’s currency relative to the currencies of other nations. When a nation devalues its currency, the goods it imports become more expensive, while its exports become less expensive abroad and thus more competitive.

Cessation of contribution payments to a plan, leading to its becoming paid up, or with a view to its winding-up.

Discount Rate
The interest rate used by a company to discount the value of future cash flows to the present.

Payments made by companies to their stockholders, usually financed from profits.