Top-Up Flashcards
Employers are required to auto-enroll employees when over what age and earnings?
Employee age 22 & Earning £10k+
If a person is entitled to old and new state pension how will they receive this?
Receive higher entitlement of old pension & entitlement to new pension
Rate of tax if pension is left in trust?
45%
If you exceed annual allowance what rate of tax will you pay?
Marginal rate
Do bonuses count towards DB pension income?
Most schemes do not include bonuses in definition of pensionable salary
What main assumption is made for a transfer value comparator when transferring from a DB to SIPP?
Discount rate for costs is 0.75% and GILT yield investment returns
Who draws up statement of investment principles in an occupational scheme?
Trustees
Added years voluntary contribution scheme would be most beneficial to who?
An employee who expects their income to increase in the future
If you are of ill health how do you receive DB income early?
Scheme trustees must agree acting in accordance with scheme rules
What counts and doesn’t count as income to set limit on pension contributions that a person can make?
Counts:
- salary
- bonuses
Doesn’t count:
- bank savings
- dividends
What is the limit of a pension small pot?
£10k
What is a graduated pension?
When made NI contributions prior to 1976
Tapered annual allowance (TAA)
- rate lose AA
- min. value AA can tapered to
Clawback of tax relief from higher earners
Lose £60k AA at a rate of £1 for every £2 earned. When income earned is more than £200k
Min. AA tapered to £10k
Annual allowance and min. value for MPAA to be considered?
AA - £60k
MPAA - Min. value of £10k
What if a person with no income pays over £3,600 allowance?
Taxable above allowance at marginal rate
Annual allowance
100% of gross annual salary upto £60,000
OR
£3,600
What is tax rate for contributions made above AA?
Taxable at marginal rate
How many years can you carry forward your annual allowance and what amount? What order would the annual allowance be used?
3 previous tax years in total carrying £40k for each yr (current and 3 previous)
Current - Then 3yrs ago - Then 2yrs ago - Then 1yr ago
For how long will MPAA apply if triggered?
Forever when making contributions to a pension scheme
Steps for MPAA
- Has trigger event occurred?
- Is DC pension input £10k+
- Apply MPAA limitations
Main limitation of SSAS?
No more than 5% of fund can be invested into sponsoring employer shares, unless more than 1 sponsoring employer as then limited to 20%
LTA
Limit on amount of benefits that can be left at retirement or on death pre-retirement tax free
£1,073,100
When can someone get pension income beyond their LTA tax free?
- Pension credit awarded through divorce but must be awarded pre-A day or already receiving post-A day
When can you crystalise benefits pension before age 55 whilst being in good health? (2)
- if contractual right
- Special occupation
What is the effect of retirement before age 55?
Lose 2.5% of SLA for each completed year prior to age 55. E.g. if she 35 then 19 completed yrs.
Age limit for tax free lump sum?
No limit
Types of drawdown pension:
- capped
- flexi access drawdown
Capped - income is limited to 150% GAD
FAD - unlimited withdrawals
Max. value for triviality options such as:
- trivial pension
- small pots triviality
- dependent pension
- OPS being wound-up
What scheme are these applicable for?
Tax rules?
T - £30,000
SP - 3x £10,000 pots so £30,000 in total
DP - £30,000
OPS - £18,000
DB scheme
Usual tax rules except DP which unless member dies pre-retirement no element is tax free
Benefit crystallisation event (BCE) leads to what?
Test against LTA or higher LTA
When are there no BCE’s?
Over age 75
If die pre-age 75 then tax free upto LTA
If die after age 75 then taxable at marginal rate after tax free lump sum
Charity lump sum death benefit
Leave lump sum to a charity and no matter the age of member, lump sum will be tax free
Max. age of a dependent upon members death
Child under age 23 at date of members death. Can go over 23 if in full-time education, until finishes or disabled
Nominee
Successor
Nominee - nominated by member to receive pension benefit on death. If no one nominated scheme admin. will choose if have no dependents.
Successor - nominated by dependent, nominee or previous successor to receive income on death of current recipient. If no one selected scheme admin. will choose.
Transitional relief on LTA
- how to apply
- forms of protection
As some pension members had done nothing wrong we’re now at risk of ending up with a tax penalty. Gov. protected them from being punished.
- complete protection of existing rights form
- Forms:
Primary protection - Funds over £1.5mil their own individual life time allowance (ILTA) which is more than LTA. Taxable at marginal rate above own ILTA
Enhanced protection - No min. value and completely protected against charges above LTA however no further contributions can be made or new schemes joined (unless auto-enrolled to work scheme and have 1 month to unenrol) otherwise taxable above LTA at marginal rate
How does tax free pension lump sum differ from normal rules for enhanced protection?
Approved for enhanced protection before 15th March 2023:
Is a variable % of overall fund value with no limit. NOT set 25% of pension value upto LTA.
Fund valued at 5th April each yr and that is max. fund value for the year, but if fund value reduces then reduced value used for tax free pension lump sum amount.
Approved for enhanced protection from 15th March 2023:
Cessation event rules - Max. pension lump sum is lower of £375k or 25% of pension value
What must you be as a sheme admin. for a RPS?
Known to HMRC as they register the scheme - Not registered with TPR or authorised by FCA
Can a scheme admin. outsource work?
How many days must a scheme admin. give if need to give notification for something of note as required?
How many days does a scheme admin. have to report any contribution payment delays to TPR?
Yea, but responsibility lies with scheme admin.
31days notification from date
30 days
How long do you have to contact a scheme admin. when accessed pension fund?
91 days
Pension dashboard
Access info. on all of their pensions online
‘Pension providers’ do what?
Ensure people info. is kept upto date
What types of schemes do TPR focus on?
Occupational schemes
Scheme rules override
If scheme is old an has not allowed pension freedoms then scheme override is done so scheme rules don’t need to be amended and no negative tax implications caused.
Types of divorce settlements:
- Offsetting
- Earmarking
- Pension sharing
O - member keeps pension but gives other assets to compensate for this
E - ex-spouse gets entitlements to pension on crystallisation
P - Split pension on divorce either transferring into own name or transfer to own RPS
Cash equivalent transfer value (CETV)
Fund value - charges
How does earmarking for divorce settlement effect LTA?
Both members and ex-spouse is calculated as members funds so all deducted from LTA
Equalisation within EU law focuses on what?
Ensures no gender discrimination within RPS
Min. value of a bankruptcy?
£5k
Income payment order
- max length
- how often are reviews
Pension income above funds meeting basic needs can help repay creditors
- 3yrs
- Reviews every 1yr
How are pension benefits treated by a trustee in bankruptcy for both crsytalised and Uncrystalised for the below schemes?
Uncrystalised:
- All protected by Welfare reform pension act (WRPA), except state benefits which do not form part of the estate
Crystallised:
- All can be accessed through an income payment order (Even state benefits) except GMP which cannot be accessed
The Pension Ombudsman
Deals with pension admin. and running complaints. NOT advice complaints.
FOS
- If no resolution through complaints process then how long before provider must make client aware of FOS rights?
Deals with advice complaints
8 weeks
FOS time constraints (3) & money limit?
- 6 months from firm final response
- 6 years after event
- 3yrs from when know had cause of complaint
- £415,000 + interest and costs
Pension protection fund
- how is this funded?
Protect DB members should employer goes insolvent and asset’s insufficient to cover DB scheme
- funded through levy on both DB & DC schemes
Moral hazard
Employer knowing they’re insolvent gives amount of benefits to members knowing PPF will cover the remainder
Section 143 valuation
Section 179 valuation
143 - For insolvency - Value if all assets were purchased by insurance company
179 - Valuation for on-going schemes to establish the level of scheme based risk levy paid
Who gets 100% or 90% compensation from Pension Protection Fund?
100%:
- Receiving pension or dependent pension (unless taken early and of good health)
90%:
- Not yet receiving pension or taken early and of good health
Dependent
Under 18
or
under 23 and in full time education or disabled
Financial assistance scheme
Old version of PPF and pays 90% upto value of £41,888 for an insolvent DB scheme or 50% for dependent pension.
Fraud compensation fund
Gives compensation for victims of fraud, dishonesty or assets misinterpretation. Covering DB &DC scheme.
Pension liberations schemes
Scams tempting RPS members to transfer funds into unregistered scheme
Is cold calling always illegal regarding pensions?
Yes, unless through friend, on social media, etc.
Worker categories for workplace pension scheme (3)
Auto enrolment
- eligible job holder
- employees age from 22 to SPA earning over £10k
Opting-in
- Non eligible job holders
- not auto enrolled but have right to opt-in
- Age between 16 and 24 or SPA and 74 earning over £10k
Right to join
- Entitled worker
- entitled workers who can choose to join the scheme but are not auto enrolled or opted-in
- age between 16 and 74 earning less than LEL of £6,396
What happens if you opt out of auto-enroll occupational pension scheme?
Re-enroll every 3yrs
NEST
NOW pension
People’s pension
NEST - Gov. Pensions scheme
NOW - Low cost alternative to NEST
People - Non-profit scheme
What can an auto-enrolment scheme not do? (3)
- Contain barriers to enrolment
- Require members to provide info. to remain a member
- Require employer to provide member info. as a condition to join
How long does a jobholder have to opt out of auto-enrolment scheme?
1 month from the later of becoming a member or auto-enrolment info. received by employer
If opt-out form completed wrong then get extended to 6 weeks
How long must pension records be kept?
6yrs, unless is an opt-out then is 4yrs
Revaluation of a DB scheme
Escalation of a DB scheme
Revaluation- Increasing value to match inflation of benefits yet to be received
Escalation - Increasing value to match inflation of benefits currently receiving
Underpinned scheme - DB or DC underpin
DC underpin:
- will receive higher of DB or DC
DB underpin:
- Receive contributions on DC basis but with a minimum level of earnings, if required
How often are DB scheme funding rate reviews by scheme actuary?
Every 3yrs, ensuring sufficient assets to meet retirement
GMP
Guaranteed minimum pension - min. income will receive from scheme will atleast equal state earnings related pension
Bridging pension
Retirement age earlier than SPA and pays higher amount between retirement and SPA to bridge the gap.
Pension increase exchange
Take higher initial pension payments in exchange for giving up some of annual inflation increases offered
What is a notional form? Is this legally binding? Is IHT paid on this
Expression of wish, who to pass scheme to on death
Not legally binding
No IHT paid on this
Upto what % will a dependent pension receive when member died?
Upto 100% of members full entitlement
Serious ill health
ill health retirement
Serious - Less than 12 months to live
ill health - unable to carry our own occupation
Notionally funded scheme
Invests in gilts and gov. funded investments
The transfer club
Members of public sector schemes can transfer their pension over to new scheme without any fees a
Section 179 valuation
Section 143 valuation
179 - For live on going schemes to establish risk level required to meet liabilities
143 - Scheme coming to a close due to insolvency. Simpler valuation process.
What is max fine from TPR should DB scheme pay if they do not notify members of changes?
£50,000 max.
Early leaver options of a DB scheme:
- Refund of personal contributions
- <2yrs service aka short service fund. No obligation for scheme to offer refund and only members contributions are refunded not employers
Tax:
First £20k taxable at 20%
Remainder taxable at 50%
Early leaver options of a DB scheme:
- Leave scheme benefits preserved
- Must have 2 or more yes service aka short service benefit
- revaluation is carried out to inflation proof investment from time of investment to time of withdrawal
Early leaver options of a DB scheme:
- Crystallising scheme benefits
- If age 55+ and have 2+ yrs service then can crystalise DB scheme
Early leaver options of a DB scheme:
- Transferring CETV to another RPS
Transferring cash lump sum from DB scheme to another pension scheme.
Ceding scheme - old scheme
Receiving scheme - new scheme
Key factor to consider when calculating vale - annuity rates
Must seek independent advice when transferring min. value of? Transferring into what 3 things?
£30,000+ when transferring funds into: (show evidence to ceiding/existing scheme)
- different RPS
- different part of existing scheme
- to gain access to flexible benefits
How many hours of CPD must an advisor have completed annually?
15yrs, 5hrs independent source and 9hrs structured
Critical yield
Amount DC scheme must grow to meet guaranteed benefit of DB scheme
How long do trustees have to complete a scheme transfer from current scheme to a new scheme?
6 months
Is triage advice or non-advice?
Non-advice, meant to help clients decide if they need regulated advice
DC occupational and individual schemes trust or contract based? Method of tax relief?
Occupational - trust - net pay relief
Individual- contract - relief at source
Types of occupational DC schemes:
- Contracted- in money purchase scheme
- contracted out money purchase scheme
- Executive pension plan
- Small self administered scheme
- Targeted money purchase plan
- Section 32 policy
- Contracted- in - set up and rules made by employer
- contracted out - scheme set up externally and contracted out
- EPP - Old scheme for those with higher incomes as had extra tax benefits
- SSAS - All members become trustees and have influence on investment decisions. All funds are pooled together but can borrow money upto 50% scheme value. Max. investment of 5% in sponsoring employer unless have more than one, then is 20% total max.
- TMPP - agree a retirement age and benefit target with employer as receive promise from employer of level of income (no guarantee as employer can back out). Build DC funds however if funds do not meet income target then employer tops-up
- Section 32 policy - Used for accepting DB scheme transfers when there was a guaranteed min. income as scheme maintains guarantee but all other DB scheme guarantees are lost.
Types of individual DC schemes:
- Retirement annuity contract
- Personal pension plan
- Stakeholder pension plan
- Self-invested personal pension
- Group Scheme
- RAC - Old scheme with set rules:
— Contributions limits of 17.5% - 27.5% of income
— Normal retirement date of 60
— Tax free cash of 3x best annuity income available
Scheme gave a guaranteed annuity rate and tax reclaimed through self assessment
- PPP - Give up earnings related state schemes and self invest
- SPP - Gov. initiative for people to invest in pensions. Cheap and easy option.
- SIPP - Contract based scheme with a provider who has wide variety of investment options to self invest. Can borrow upto 50% net value of scheme.
- Group - arranged through a provider and is a collection of individual plans that are fully portable from employer to employer
Independent governance committee
Introduced by gov. to ensure contract workers are getting value for money from pension schemes off employers
When not sick enough to claim serious illness and receive pension but unable to work can claim:
- Waiver of contributions
- Pension contribution insurance
How long must have made initial payments to claim?
Must have made initial payments for atleast 26 weeks
If recover from serious ill health what can happen to pension?
Reduce or even stop
What is difference in age from SPA and normal minimum pension age (NMPA)
NMPA will always be 10yrs lower so is now 55 and when SPA rises to 67 NMPA will rise to 57
Secondary annuity market
Those who have an annuity already and are tied in without use of pension freedoms and cash options
Scheme pension
Available for a DB pension. Transfer DB scheme in full pre-crystallisation to DC scheme to access other income options and pension freedoms not available with DB scheme.
Pension protection:
- Guarantee period
- max length?
- Who can you pass this to?
Pays out for a guaranteed period of time
- Max length of 10yrs.
- Can pass to dependents or anyone they choose.
Pension protection:
- Lump sum on death
- Definition
- Tax rules for DB & DC scheme
How long do have to receive before then taxable?
Take members pension in full as lump sum on their death
Usual age 75 rules apply for the below and always taxable to recipient
DB & DC:
If die pre-crystallisation - Must be paid within 2yrs or taxable in full at beneficiaries marginal rate.
If die in retirement - Just fully taxable to as income for beneficiary. No 2yr rule or LTA check.
Main differences between a lifetime annuity and scheme pension? (2)
LA:
- Members choose who annuity is bought from through OMO
- Member can select benefits appropriate to them
SP:
- Scheme determines provider
- Scheme rules can prohibit options
What is the most expensive add on for an annuity?
Escalation (inflation proofing)
- Enhanced annuity
- Impaired-life annuity
- With-profits annuity
- Index-linked annuity
EA - normal annuity where the riskier you are the higher rate you will get.
IA - annuity for those with a short life expectancy and high annuity rates.
WPA - Gives regular bonuses and ‘smoothes out’ increase.
ILA - Directly linked to an index so no ‘smoothing out’.
Who can a scheme pension death benefit be paid to when using a guarantee period?
Who can a annuity death benefit be paid to when using a guarantee period?
When can income cease?
Scheme pension - Dependent only
Annuity - dependent or nominee
Income can cease if dependent is not a child and dies or remarries
Types of drawdown pension:
- Capped
- Flexi- access
Capped:
- drawdown from crystallised funds through encashment or annuity purchase
- only on existing plans, no new ones can be set-up
- no min. income requirement
- max income capped at 150% of their GAD rate
- valuation factor of 25:1 used
Flexi:
- no min. or max. withdrawal levels
- all funds can be taken as cash
- drawdown from crystallised funds
- HMRC must be notified of intention to access
- SA must notify member have accessed benefits within 31 days and member has 3 months to notify any other scheme have accessed flexible benefits
How often are drawdown pension reviews?
Under age 75 - Every 3yrs
Age 75+ - Every 1yr
Nominee
Successor
Nominee - When you have no dependents can nominate someone to receive pension on death.
Successor - Nominated by a recipient who is now receiving pension to then again receive pension
Old basic state pension categories A-D
Category:
A - Based upon NI record. Max entitlement at 30yrs
B - Top-up own pension with spouses
C - Available to those over state pension age from 1948
D - Available to those over age 80 with no or minimal state pension
Min. number of NI contribution years to receive anything and full single- tier state pension?
35yrs for max.
10yrs for min.
How often is SPA reviewed?
Every 6yrs
How is single-tier and old state pension inflation proofed?
Triple lock system - Will rise by higest of:
- National average earnings index
- CPI
- Fixed rate of 2.5%
What dates do triple lock system run from?
July to July for earnings
September to September for CPI
Then applies to the following April
Rules that must be met to receive bereavement support payment: (4)
- paid NI for 25 weeks of any tax yr
- died because of work
- under SPA
- not in prison
Inherited SERPS % received and dates
100% men born before - 6/10/37
50% men born on or after - 6/10/45
100% women born before - 6/10/42
50% women born on or after - 6/7/50
Excluded and partly excluded income for calculating if need pension credit
Excludes: (CCHAD name Chad)
- disability benefits
- attendance allowance
- housing benefit or residency orders
- child benefits or maintence
- charity payments
Partly excludes:
- £10 of total income from any widow or civil partner pensions
- £20 of each payment from a tenant or sub tenant
- any interest costs or equity release schemes
Included capital for calculating total income to figure out pension credit entitlement
- how to calculate how much to reduce pension credit entitlement by
First £10k of capital is disregarded then:
- All cash deposits and investments included minus any mortgages or loans
- Divide total remaining by £500 = Amount to reduce credit entitlement by
Guaranteed credit
Receive from SPA and ensures person receives a min. level of income
Savings credit
What if we’re a couple?
Is this still available?
How would savings credit reduce if had high amount of savings?
credit threshold and savings credit threshold then
Only one have to meet requirements if a couple
No longer available
For every £1 over guaranteed credit level a debit of 40p would be applied until savings credit was £0. So will start to reduxe from £6k and be £0 at £16k
Cash flow modelling
Assessing current and forecasted wealth to build a picture of their finances
Safe withdrawal rate
- how many yrs is assumed that retirement will last?
Rate a client can safely withdraw their pension whilst ensuring it lasts their lifetime.
- Using an expected 30yrs in retirement
Lifestyle fund
Targeted date fund
LF - invest in riskier investments the further from retirement the individual is and have a pre-programmed phased switch 5/10yrs prior to retirement.
TDF - set a target date and have high risk investments then reduce when approach target date
Main benefit of a Small self administered scheme has over SIPP? And main disadvantages?
+ Can borrow upto 50% of net assets
- can invest no more than 5% of overall assets into sponsoring employer. Unless more than one then limited to 20% of overall assets.
Is SIPP & SSAS occupational or individual scheme?
SIPP - individual
SSAS - occupational
EIS & SITR, SEIS , VCT
IT:
EIS & SITR
- 30%
- £1m/£2m
- 3yr min. holding period for relief
- Carry back contributions allowed
- Further income and div. fully taxable
SEIS
- 50%
- £100k
- 3yr min. holding period for relief
- Carry back contributions allowed
- Further income and div. fully taxable
VCT
- 30%
- £200k
- 5yr min. holding period for relief
- Carry back contributions NOT allowed
- Further income and div. are not taxed
CGT
EIS & SITR
- Exempt on disposal
- 3yr min. holding period
- Ability to offset losses - Yes
- Re-Investment relief - Yes
- CGT - Deferred until sale
SEIS
- Exempt on disposal
- 3yr min. holding period
- Ability to offset losses - Yes
- Re-Investment relief - Yes
- CGT - 50% exempt, 50% subject to CGT
VCT
- Exempt on disposal
- No min. holding period
- Ability to offset losses - No
- Re-Investment relief - No
- CGT - Exempt immediately
IHT
EIS & SITR
- Only not subject to IHT if written in trust
SEIS
- Only not subject to IHT if written in trust
VCT
- None
Employers min. pension contribution %?
3%
What year and age does SPA go from 67 to 68?
1979 & age 44 currently
3 methods of individual contribution tax relief:
Net pay method
Relief at source
Relief by making a claim
Net pay method - contribution deducted from gross pay before calculating income tax
Relief at source - contributions made net of basic rate tax and claimed by the provider from HMRC then added to pension contributions. Higher or additional rate tax reclaimed through self assessment
Relief by making a claim - Contributing to an retirement annuity contract so don’t receive tax relief on contributions up-front and all tax relief reclaimed through self assessment
Death benefit for a DB scheme
Death in service lump sum
Dependent pension
Methods of topping up a DB scheme:
Additional voluntary contributions
Free standing additional voluntary contributions
Methods of topping up a DB scheme:
Additional voluntary contributions
Free standing additional voluntary contributions
AVC:
- Added years - made extra contributions which purchased additional years and can only be crystallised at the same time as main contributions
FSAVC:
Defined contribution - invests additional contributions into a DC find so payment depends on annuity rates and markets. Can be crystallised at different time to main contributions if choose to
Lump sum payment on death & tax implications:
DB scheme
If die pre-crystallisation - Can take benefits as a lump sum or income. Must be paid within 2yrs or taxable in full at beneficiaries marginal rate.
If die in retirement - Can take benefits as a lump sum or income. No 2yr rule and no LTA check as already done in crystallisation so now just fully taxable to as income for beneficiary.
Is state pension paid if you live abroad?
Yes, but only receive escalation increases if:
- live in UK min. of 6months a yr
- reside in EEA state or Switzerland
- reside in a country with a DWP agreement
Otherwise will receive base state pension with no triple lock increases
2 options that gov. give to encourage people to seek advice around pensions
- employer arranged advice allowance
- pension advice allowance
- employer arranged advice allowance - Allows employer to pay for employees to receive financial information and advice upto £500 without it being taxed as a benefit in kind, taxed to employee as BIK over this
- pension advice allowance - members of DC scheme can take upto £500 out of the scheme tax free and can be taken upto 3 times per member, for putting towards cost of financial advice (not only pension advice). Must be paid directly to financial advisor.
What type of scheme does the pension protection fund cover?
DB scheme only
What is the min. rate of revaluation for a pension scheme?
Min. rate of 2.5% or inflation (if lower), will be applied
What are technical provisions of a DB scheme?
Valuation of schemes liabilities
What is max. pension lump sum allowed at retirement as a final salary?
120/80ths final pensionable salary
What type of scheme can be refunded if a member for less than 2yrs service?
Defined Benefits (DB) scheme
How is foundation state pension received?
Excess amount as additional income
How to calc. DB pension entitlement if take lump sum when given commutation factor?
Lump sum / commutation factor = X
Annual salary - X = Answer
How to calc. DB salary if given commutation and fraction with no lump sum?
Fraction x salary x no. of yrs service = X
X / commutation factor = answer
What amount is used when carrying forward annual allowance? And do employer pension contributions count towards AA?
£40k
Yes
Guaranteed minimum pension - GMP
A minimum pension normally provided through a workplace DB scheme to people who contracted-out of SERPS (old pension scheme) and must give amount atleast equal to SERPS
Flexi access drawdown pension
Take 25% lump sum but then leave remainder invested but can access as much as would like but this would then reduce their income received
How to calc. max. Pension withdrawal when limited to 150% GAD for capped drawdown?
GAD rate / 1000 = Y
Y x 150% = max. withdrawal
How to calc. max income from an annuity for yr 1
Cash free lump sum + (annuity income - tax)
How do you receive new and old state pension together?
Receive part of old and full new state pension
Short term annuity
Temporary arrangement that provides a fixed income for a fixed period of time and income taxable at marginal rate.
Usually used in conjunction with capped or flexi-access arrangements
Max. 5yr term - (SHORT HAS 5 LETTERS)
Must be bought with drawdown pension funds
Limited to 150% GAD for capped drawdown
If die will go to dependent or nominee for set period of time
Rate of tax for a dependent pension?
Pay in full on recipients tax bracket regardless of age of member on death
Pension protection fund
- How is this funded?
- when pays out 100% or 90%
Protection DB members from insolvency
Levied against DB & DC schemes
100%:
- Receiving pension or dependent pension (unless taken early and of good health)
90%:
- Not yet receiving pension or taken early and of good health
What schemes can you take a lump sum from?
All schemes
