PP & IP Flashcards

1
Q

For PP how are Pre 2012 BCE’s revalued?

A

BCE x (1.5m/SLA @BCE)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

For PP how are Post 2012 BCE’s Revalued

A

Not revalued - SLA was £1.8m underpinned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

For PP what happens to the crystallised LTA and TFC when revalued?

A

LTA - goes down (SLA always lower than £1.5m)

TFC - goes up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Primary Protection TFC options (3)

A

25% of £1.5m
SSTFC > 25% of FV (Scheme!)
RTFC > £375k (Nottingham!!)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

With PP how does RTFC increase?

A

Growth in the SLA between A day and BCE - £1.8m underpin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

PP - How is TFC pre 2012 revalued if taken in stages?

A
Need to revalue the previous TFC: 
TFC x (£1.8m/SLA @ TFC withdrawal)

This brings the TFC up to current SLA level.
TFC amount therefore increased.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

IP14 - How are pre 06/04/14 benefits valued?

A

BCE value x (£1.5m/SLA at time of BCE)

This uprates the original BCE to £1.5m level to see if they qualify for IP14

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Max TFC under IP 14 or 16?

A

25% of personalised LTA unless SSTFC applies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

IP can be lost or reduced by a pension debit after 2014. What is the reduction?

A

5% for each complete tax year from 2013/14. Discount the debit back to 13/14 value.

E.g £400k debit after 4 years would reduce by £80k. If this takes the value below £1.5 (IP14) or £1.25 (IP16) the protection is lost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

IP16 - How are pre 06/04/16 benefits valued?

A

BCE value x (£1.25m/SLA at time of BCE)

This uprates the original BCE to £1.25m level to see if they qualify for IP16

How well did you know this?
1
Not at all
2
3
4
5
Perfectly