Introduction

Question 1

Whose responsibility is it to register the pension scheme with HMRC?

Answer 1

Scheme administrator

Question 2

If HMRC have not decided within 6 months, or the applications for a RPS has been rejected, where can the scheme administrator appeal to?

Answer 2

Tax tribunal

Question 3

What reasons have contributed to the decrease in annuity rates?

Answer 3

Introduction of gender neutral rates
Increasing life expectancy
Low interest rates/low gilt yields

Question 4

Did the Second State Pension apply to people other than employees?

Answer 4

Yes - carers and others with disabilities/broken employment records

Question 5

Describe what contracting-out was.

Answer 5

An individual opted out from the additional state pensions and a % of their NI contributions were redirected to a PPP.
If this was done at scheme level, the employing company had to provide equivalent pension benefits.

Question 6

What is the cap on charges for stakeholder plans?

Answer 6

1.5% for first ten years, then 1% thereafter

Question 7

What private pension provision is most likely to offer GARs?

Answer 7

RAC

Question 8

Describe what a collective defined contribution scheme is.

Answer 8

The employer pays a fixed rate of contributions but the employees receive pensions with variable increases through cross-funding within the scheme.

Question 9

What is the tax-exempt employer allowance?

Answer 9

Allows employers to contribute up to £500 per employee per year to help pay for pension advice.

Question 10

Is the tax-exempt employer allowance deemed a benefit-in-kind?

Answer 10

No

Question 11

What is the pensions advice allowance?

Answer 11

An individual can withdraw up to £500 from a DC scheme to pay for registered financial advice, up to three times, as long as they are in different tax years.