Chapter 4 Flashcards
What is the TPR’s purpose?
Regulate trust based/work based schemes
Support employers with auto enrolment
What Responsibilities does TPR have?
Recover unpaid contributions
Protect, improve, and reduce the risk of PPF
Balance the needs of employers growing vs the needs of DB scheme
What are FOS compensation limits for complaint referred in 2022
£375k plus interest and other compensation
£355k in 2020/21, £350k in 2019
Who is an eligible complainant for FOS
Five - trustee with less than £5m
Fifty - small business with less than 50 employees
.5 - charity with £6.5m turnover or balance sheet of £5m
Buy to let guarantor
Microenterprise with less than 10 employees
Not Occ or PPP (Ombudsman)
What is the role of the Ombudsman
Deal with complaints relating to how pension scheme are run (not misselling)
Who does the PPF apply to?
DB & Hybrid Members (only DB part).
Not wound up before 06/04/2005
Can the PPF pay benefits?
Yes, Benefits can be paid
No new members can join and no further benefits can accrue.
No Transfer Values
What are the levels of PPF compensation?
100% at NRD, receiving survivors income, ill health (case by case)
90% Retired/Deferred but not at NRD
50% Spouse
25% per child up to 50% PLUS Spouses
50% per child up to 100% NO Spouses
What are the revaluation levels of PPF for Deferred and receiving income members?
Deferred (too young)
Pre 2009 - CPI Max 5% (Fer 9, fine, five)
Post 2009 - CPI Max 2.5%
Receiving Income
After 1997 then CPI Max 2.5%
What are the age/salary bands applicable to auto-enrolment?
Eligible - Age 22 & Over £10k Earnings
Non-Eligible (right to opt in) - Age 16 - 21 & SPA (66) - 74, Over £6,240 Earnings
Entitled (to ask) - Over SPA (66), Less than £6,240
4 weekly pay is £6240 - £480, £10k - £768
Employee can still take TFC at retire
How long can an employer postpone auto-enrolment for?
1 day to 3 months.
No Cap on Auto Enrol Charges
What is the minimum contribution for auto-enrol?
Employer 3%, Min Total 8%. No minimum for employee as employer could pay in full.
When can a member opt out?
They must have become an active member (joining window is 8 weeks) AND received enrollment information
Which scheme has an obligation to accept business even if it is unprofitable?
NEST
How does Offsetting work?
Assets/income of same value are transferred to the ex-spouse
How is a lump sum earmarking order taxed?
Member is deemed to receive all taxed on members income
When can a Periodic Payment earmarking order stop?
Member dies, Ex-spouse remarries/cohabits (although lump sum would continue).
Member remarries then continues as normal
Which benefits can & cannot be applied in a pension-sharing order?
CAN - Protected payments, SERPS, S2P, Occ (inc AVC), Ind, statutory
CANNOT - New State, Basic State, State Graduated, Widows
What does an unfunded DB have to offer in pension share?
Has to offer membership, does not have to offer transfer value.
What contributions must be paid for a member on parental leave in a DC paid scheme
Employer conts based on pre-leave conts, employee based on actual earnings.
How long can a creditor claim income?
Max length is 3 years from when income order takes effect
