flashcard 2
Fixed Protection 2012 - protection up to the lifetime allowance charge up to a maximum of
£1.8m
What triggers the MPAA
Taking an UFPLS
Drawing from a flexi-access capped drawdown fund
Exceeding capped drawdown limit
Taking a stand-alone lump sum with primary protection
Taking a scheme pension in a small scheme
What is pension offsetting
When divorcing or dissolving your civil partnership, all your assets and those of your ex-partner are taken into account.
If you decide to opt for pension offsetting, each party keeps their pension assets. But these are then offset against the other assets – for example, if one person has a large pension pot, the other might get the house (assuming it has a similar value).
What is pension sharing
Pension sharing allows a member’s pension savings to be split at the point of divorce or annulment of a marriage or, for civil partnerships, on dissolution or annulment. In this article, to keep things simple, we’ll use ‘divorce’ to cover each of these.
What is earmarking
Pension earmarking allows the courts to make an order requiring part, or all, of the member’s pension benefits (except the state pension) to be paid to their ex-spouse or ex-civil partner when they become payable.
How often must a registered pension scheme submit an accounting for tax (AFT) return to HMRC
Quarterly
Role of pension ombudsman
Investigate complaints about how pension schemes are run
Tax relief for employer contributions is normally spread over more than one accountancy period if the relevant excess contribution is at least
£500,000.
£500 - £1m - 2 accounting periods
£1m - £2m - 3 accounting periods
£2m or more - 4 accounting periods
Unauthorised payments charge
Tax charge of 40% of the unauthroised payment made for the benefit any scheme member.
Unauthorised payments surcharge
additional tax charge of 15% where the value of the unauthorised payments is 25% or more of the fund value.
Pensions in Payment from DB Occupational Schemes must increase by at least
LPI - Limited Price Indexation. since April 1997
Which body sets out the codes of practice for the trustees of an occupational pension scheme
The pension regulator.
What is the codes of practice
The aim of the codes is to set out how the pensions regulator sees a well run scheme going about complying with a particular regulatory obligation.
Short Service Refund
When a member leaves the service of the defined benefit scheme employer and does not
have a statutory right to preservation, it may be possible for them to receive a refund of their
own contributions paid into the scheme, with or without interest.
available if employed for less than two years.
Short service refund tax
20% on first £20k and remainder taxed at 50% - rests with scheme admin rather than member.
Refund to employer is taxed at 35%.
Non-eligible jobholders for auto enrolement
under age of 22
over SPA
earn less than the earnings trigger but more than the lower level of qualifying earnings.
don’t need to be auto enrolled but must be made aware of the right to join scheme. If joining they can join like anyone else can.
Eligble jobholders for auto enrolment
At least 22 and under SPA
Above the auto enrollment earnings trigger
automatically enrolled
non eligible jobholders for auto enrolement
between 16 and 21, or SPA and 75
above the auto enrolment earnings trigger
not automatically enrolled buy can opt in
between 16 and 75
equal to or below the auto enrolement earnings trigger
not automatically enrolled but can opt in