Other Facts

Question 1

Do you include someone’s bonus in their pensionable salary?

Answer 1

No, just their basic salary

Question 2

How do you work out max total annuity income (assume annuity rate of 3% and crystallises £20,000? (4 steps)

Answer 2

Step 1: Convert it to a £100 fund, and assume £25 (25%) is PCLS
Step 2: Multiply the remaining £75 (75%) by the annuity rate of 3%
Step 3: Take basic rate of 20% tax off, ie multiply by 80% to give net rate
Step 4: Add the net rate to £25 (PCLS figure) to give your “actual” annuity rate
Step 5: Multiply £20,000 by this “actual” annuity rate

Question 3

What is the minimum employer contribution into a pension scheme?

Answer 3

3%

Question 4

A trivial commutation lump sum death benefit is max how much?

Answer 4

£30,000 per scheme

Question 5

Short term annuities don’t have to pay income annually!

Question 6

If someone requests enhanced protection 2016 they must stop contributing to their SIPP! But with primary protection they can carry on contributing!