Occupational Scheme Flashcards
What is an occupational scheme?
An occupational pension scheme is a retirement savings plan set up by an employer to provide a regular income after retirement.
True or False.
Anything that says ‘Trust based’ pension is an occupational scheme.
True.
Name the two main types of occupational pension schemes.
- Defined Benefit.
- Defined Contribution.
What is Auto-enrolment?
Auto-enrolment is a system introduced by the government in 2012 to help more people save for retirement. Before 2012, joining a workplace pension was optional and required employees to opt-in. Now, employers must automatically enrol eligible employees into a pension scheme.
Who determines the members, eligibility, benefits and minimum requirements for auto enrolment?
The employer.
Who runs an occupational scheme?
All run by trustees who are the legal owners and have a duty to the members not the employer.
All Occupational Pension Schemes are governed by a board of trustees. The trustees are jointly and individually liable for everything to do with the pension scheme. Their role is to make decisions about the pension scheme solely in the interests of the scheme members.
What is the minimum numbeer of trustees required for an Occupational Pension Scheme?
Minimum 3 trustees required in all circumstances.
Which organisation has the responsibility of seeing that occupational pension schemes are properly run?
The Pension Regulator (TPR)
What are the two types of ‘trust structure’?
Master Trust
Member nominated Trust
What is a ‘Master Trust Pension’?
A ‘Master Trust’ – there will be no connection between the company and the trustees.
An example is ‘NEST’ set up by the government to oversee auto-enrolment schemes.
Authorised by the Pensions Regulator (TPR)
When should contributions be paid into your scheme by the employer?
Contributions from staff’s pay must be paid into the pension scheme by the 22nd (19th if you pay by Cheque) day of the next month.
What is the (IDRP) Internal Dispute Resolution Procedure?
IDRP is ran by trustees, and can deal with disputes and complaints, before you take it to pension ombudsman.
The pension ombudsman (POS) (NOT interested in personal pension complaints and only for administration issues (Maladministration).
An occupational pension scheme member has recently complained to the Pension Ombudsmen about maladministration within their scheme. Upon whom is any judgement passed by the ombudsmen binding?
A. Neither the trustees nor the member.
B. The trustees but not the member.
C. The member but not the trustees.
D. Both the member and the trustees.
D. Both the member and the trustees.
A large UK company is setting up a new occupational pension scheme for their employers. Who is most likely to draft any required documentation around the pensions inception?
A. The employer.
B. Pension lawyers.
C. The trustees.
D. The pension regulator.
B. Pension lawyers.
What is the minimum number of trustees required to run a scheme?
Minimum 3 trustees required in all circumstances.
What is a member nominated trust?
Pension lawyers’ can write up a bespoke trust - this will sometimes have trustees who also run the business and therefore need the pension members to be represented.
Member nominated trusts are run by trustees who have a part in the scheme and must be voted in
What type of complaints are the Pensions Ombudsmen (PO) most likely to investigate?
A. Advice complaints about occupational schemes
B. Administrative complaints about occupational schemes
C. Advice complaints about personal pension schemes
D. Administrative complaints about personal pension schemes
B. Administrative complaints about occupational schemes
Pension Ombudsmen is administrative only on work-based schemes. Binding on all parties.
Under a death in service benefit provided by an occupational pension scheme, what is meant by the term free cover?
A. No premiums payable
B. No underwriting completed
C. No lifetime allowance considerations
D. No benefit in kind
B. No underwriting completed
It means there is no requirement by a scheme for any medical, financial, demographic or lifestyle information to be provided by a prospective member
