Group Schemes

Question 1

What is a ‘Group Scheme’?

Answer 1

For companies as an alternative to a trust-based scheme, set up by an insurance company. These schemes can be cheaper and less onerous to run

A collection of individual personal pensions (One for each memember of staff)

Can be used as an alternative to auto enrolment

If you leave the company, you can take your pension wtih you - schemes are portable which is the main benefit.

Question 2

What is the ‘Direct Debit Guarantee’?

Answer 2

That any changes to your payment require 14 days notice.

Question 3

One of the main advantages of a Group Personal Pension Plan (GPPP) for an employee who is changing employer is that…

A. it will continue to revalue every year until the scheme retirement age.
B. it is portable and they will be able to continue to make contributions with a new employer.
C. it is protected by the Pension Protection Fund (PPF) in the event of the insolvency of the employer.
D. the trustees will continue to protect the policy even though it is ‘paid up’.

Answer 3

B. It is portable and they will be able to continue to make contributions with a new employer.

Question 4

What is the main benefit of a ‘Group Scheme’?

Answer 4

The scheme is portable and you will be able to continue to make contributions with a new employer.

Question 5

True or False:

The employer will usually obtain advice from an insurance company.

Answer 5

True.