Laws

Question 1

Who is the main regulator of GPPs?

Answer 1

TPR

Question 2

How long do the trustees have to report that the employer hasn’t paid contributions to the scheme?

Answer 2

10 working days if employer not willing to pay
90 days if the employer is struggling to pay

Question 3

What is the maximum civil penalty that can be applied by TPR?

Answer 3

£1 million

Question 4

What is the maximum criminal penalty that can be applied by TPR?

Answer 4

Unlimited fine and/or 7 years’ imprisonment

Question 5

What is the maximum that FOS can award for a financial dispute?

Answer 5

£355k plus interest/costs

Question 6

What are the two key tests that a scheme must meet to potentially enter the PPF?

Answer 6

Employer becomes insolvent
Scheme is underfunded

Question 7

What is the PPF compensation limit for members who have already reached the scheme NRD or survivor’s already in receipt of payments?

Answer 7

100%`

Question 8

What is the PPF compensation limit for members yet to reach the scheme’s NRD?

Answer 8

90%

Question 9

What is the PPF compensation limit for survivors yet to start payments?

Answer 9

50% of member’s entitlement

Question 10

For benefits accrued pre-1997, what is the maximum escalation allowed under the PPF?

Answer 10

None

Question 11

For benefits accrued post-1997, what is the maximum escalation allowed under the PPF?

Answer 11

CPI up to 2.5%

Question 12

For benefits accrued pre-2009, what is the maximum revaluation allowed under the PPF?

Answer 12

CPI up to 5%

Question 13

For benefits accrued post-2009, what is the maximum revaluation allowed under the PPF?

Answer 13

CPI up to 2.5%

Question 14

What is a potential LTA disadvantage of a pension sharing order?

Answer 14

Member may lose their individual/primary protection

Question 15

In what situation may a pension be protected from a Trustee in Bankruptcy?

Answer 15

State scheme
Benefits not yet in payment
GMP

Question 16

What criteria classifies someone as an eligible jobholder?

Answer 16

Aged over 22 with earnings > £10k

Question 17

If an eligible jobholder opts out of their workplace scheme, how often must they be auto-enrolled again?

Answer 17

3 years

Question 18

What exemptions apply to a company’s auto-enrolment responsibilities?

Answer 18

One person company
Company that consists of a number of directors without a contract

Question 19

If an employer defines earnings as gross earnings only, what is the minimum contribution?

Answer 19

4% employer
9% total

Question 20

If an employer defines earnings as all earnings, what is the minimum contribution?

Answer 20

3% employer
7% total