BTS mock Flashcards
When you transfer to QROPS, there is a 25% charge over the LTA. When is this taken?
Before the transfer
BTS
Who is likely to be responsible for changes to eligibility criteria on an occupational pension scheme?
The employer
BTS
What is the relationship between CETV and annuity rates?
As annuity rates go up, your CETV goes down
BTS
What is the relationship between CETV and discounting rates?
As discounting rates go up, your CETV goes down
BTS
The tax relief given to employers for pension contributions is spread if…
- This year’s contributions are 210% of last years contributions
- and they are more than £500k
BTS
When would your client become involved with the Financial Assistance Scheme?
If their Defined Benefit Occupational Pension Scheme is underfunded
BTS
What are the criteria for eligible jobholders?
- Age 22-SPA
- Earns over £10,000 p.a.
BTS
Critical yield A shows the…
- net
- annual growth required from the drawdown invested funds
- to match the income
- that could be purchased via a lifetime annuity
BTS
Your client auto enrolled into her workplace DB pension scheme but left within 7 days. What impact does this have on her Fixed protection 2014?
It will not get impacted as she left.
BTS
One of the recent issues facing DB occupational schemes is…
funding deficits leading to problems in the event of mergers.
True/False?
True
“Since IAS 19, DB schemes sponsoring employers will need to show scheme surpluses or liabilities on their balance sheets. So, if a scheme has a large funding deficit, this will be more of an issue in relation to mergers.”
BTS
One of the recent issues facing DB occupational schemes is…
the need to revalue pensions in line with national average earnings.
True/False?
False
BTS
One of the recent issues facing DB occupational schemes is…
the need to escalate pensions in line with national average earnings.
True/False?
False
BTS
One of the recent issues facing DB occupational schemes is…
greater longevity of members leading to decreased costs.
True/False?
False
BTS
Your client has worked in the public sector her whole career, but moved between different jobs. She has transferred pension benefits using the Transfer Club. At retirement on 21st of November 2023, her pension scheme will use her…
[to calculate benefits]
First starting date and her final salary
A client of yours has just retired. Their PCLS entitlement is greater than 25% of their fund value despite no formal TC protection registration. How can this be?
The higher entitlement was automatically protected at A day (April 2006)
“This client must be benefitting from scheme specific tax-free cash protection. This was where a member had an entitlement greater than 25%. It did not involve formal HMRC TFC registration but was automatic as at April 2006.”
BTS
