Public sector schemes have moved from a final salary basis to a career average revalued earnings basis. However, this change does not apply to current members of public service schemes who were within:

Within how many months of the guarantee date must a member who wishes to transfer safeguarded rights provide the trustees with confirmation that they have obtained independent advice.

When undertaking an appropriate pension transfer analysis some charges do not have to be taken into account. The charges that can be disregarded are:

Registering a pension scheme with HM Revenue and Customs is the responsibility of the:

The JFR plc defined benefit scheme has recently undertaken an enhanced transfer value exercise. Which of the following deferred members of the scheme would be LEAST likely to accept this offer?

Frank is about to retire and take benefits from his employer’s defined benefit scheme. He is entitled to an annual pension of £14,000 or he can commute part of his pension for a pension commencement lump sum (PCLS). If Frank takes a PCLS of £60,000 and the scheme’s commutation rate is 15:1, how much annual pension will he receive?

Brian, who is 59, has deferred benefits in a defined benefit scheme. He wishes to transfer these benefits to a money purchase scheme, but the scheme trustees have told him that he has no right to a transfer value. This is MOST likely to be because:

Gavin received a cash equivalent transfer value (CETV) in respect of his defined benefit scheme five years ago, but did not transfer. He has received a new CETV, which is lower than the previous CETV. Which of the following factors is MOST likely to have resulted in this reduction?

What effect does changing a defined benefit scheme to a career average scheme generally have on the benefits provided to the member and the cost to the employer of operating the scheme?

Which of the following duties is the responsibility of the pension scheme actuary?

Sarah is about to retire and take her benefits from her defined benefit pension scheme. She is entitled to a maximum pension of £10,000 pa or a reduced pension plus a pension commencement lump sum (PCLS) of £22,500. The commutation factor used by the scheme is 12:1. If Sarah takes the PCLS she will receive a reduced annual pension of:

If a defined benefit scheme is in deficit a recovery plan should be put in place. When the structure of the recovery plan is being determined a number of factors should be taken into account. Which of the following is NOT one of these factors?

Gail has reached the normal pension age under her employer’s defined benefit pension scheme. She is entitled to a pre-commutation pension of £32,000. Alternatively she can take a lower scheme pension plus a pension commencement lump sum (PCLS) of £96,000. The commutation rate is 14:1. If Gail takes the maximum PCLS her residual pension will be:

Freya was a member of her ex-employer’s defined benefit scheme between 1 January 2000 and 1 May 2010. The scheme provides escalation in line with statutory requirements. Once in payment, Freya’s pension will escalate each year in line with the increases in the Consumer Prices Index capped at:

Ben has deferred benefits under a defined benefit scheme. The transfer value has reduced since it was last quoted three years ago. Which of the following factors would NOT have caused this?

Which two of the public sector schemes are notionally funded?

Melissa is a deferred member of a public sector scheme. She has the right to transfer these benefits to a scheme from which flexible benefits can be obtained because she was a member of the:

Harriet is about take the benefits from her company’s defined benefit scheme. She also has a money purchase additional voluntary contribution (AVC) fund and she has been offered the option of taking the entire AVC fund as a tax-free pension commencement lump sum (PCLS). The benefits of this course of action are that:

Nigel has reached the normal pension age under his employer’s defined benefit scheme and now intends to crystallise his benefits. His pre-commutation pension is £35,000 and the commutation rate is 13:1. The MAXIMUM pension commencement lump sum that Nigel can receive under HM Revenue and Customs rules will be:

Members of a private sector defined benefit scheme have the right to transfer their safeguarded benefits as long as they are:

Four members of different defined benefit pension schemes are approaching retirement. Who will have the largest pre-commutation pension?

At the triennial review of a defined benefit scheme the funding rate has increased. All other things being equal this is MOST likely to be because:

Most defined benefit schemes are required to formally appoint an auditor, an actuary and a fund manager. Which of these parties, if any, must be appointed by a scheme that is wholly invested in insurance policies and is earmarked?

A defined benefit scheme offers members the option of a pension increase exchange when they come to take their scheme benefits. Under the Voluntary Code of Good Practice how long should members be given to make up their minds as a minimum?

Albert has just reached the normal pension age of his defined benefit scheme and he has been offered the option of a pension increase exchange. Which of the following is NOT one of the benefits for Albert of accepting this offer?

The trustees of a defined benefit scheme received Harry’s request for a transfer value on 3 August 2018. Since the value of Harry’s safeguarded rights will exceed £30,000 the trustees must notify Harry that he must take independent advice. This notification must be provided no later than:

Julia, aged 29, was a member of her employer’s defined benefit pension scheme for 18 months before leaving their employment. In respect of her benefits under the scheme, Julia should be aware she MUST be offered:

Karl left his employer’s defined benefit scheme after 22 months membership. During this time he paid personal contributions totalling £16,000 and his employer paid contributions totalling £28,000. If Karl elects to receive a refund of contributions he will receive a NET payment of:

Stephen transferred benefits from his previous employer’s defined benefit scheme into a personal pension 10 years ago and he has recently crystallised these benefits. The critical yield has been achieved, but his benefits are still lower than if he had left them in the defined benefit scheme. All other things being equal this is MOST likely to be because:

Edward was a member of his previous employer’s defined benefit pension scheme between 1990 and 1996. The scheme was not contracted out. The scheme revalues benefits in deferment at the statutory minimum rate and, therefore, in 2018/19 his benefits will:

Harold is a registered auditor and holds a practicing certificate. However he has been informed that he cannot act as the auditor for the FER plc defined benefit pension scheme and this is MOST likely to be because:

Lionel, aged 75, is in serious ill health. He has benefits under a previous employer’s defined benefit scheme that are yet to be drawn. He has been told that it will not be possible to commute these for a serious ill-health lump sum. This is MOST likely to be because:

What is the name of the valuation that must be carried out when an employer suffers an insolvency event and the Pension Protection Fund (PPF) wish to establish whether the scheme has sufficient assets to pay benefits to at least the PPF level of compensation?

Georgia, a higher rate taxpayer, left her employer’s defined benefit scheme after 20 months of membership. During this time she had made personal contributions totalling £30,000. She has accepted the trustees offer of a return of her personal contributions and she should expect to receive a NET payment of:

Kyle was a member of his employer’s defined benefit scheme from 1 May 1997 to 30 June 2012. The scheme revalues benefits at the statutory minimum rates. Kyle’s benefits will be revalued in deferment in line with increases in the Consumer Prices Index capped at 5% for benefits accrued prior to 6 April:

The purpose of IAS 19 is to make transparent the costs to a company of running its pension scheme and to that end it requires:

A defined benefit pension scheme can pay a defined benefits lump sum death benefit in the event of a member’s death in service. What, if anything, is the maximum that can be paid?

Which of the following actions will NOT help reduce an existing deficit in a defined benefit scheme?

Oliver is about to reach the normal pension age of his defined benefit scheme. He is entitled to a scheme pension of £48,000 p.a., which will escalate in payment each year in line with RPI. Alternatively, he has been offered a pension increase exchange whereby he would receive a pension of £54,000 pa that only escalates in line with statutory requirements. In assessing this offer Oliver should be aware that:

Leonard’s scheme pension commenced five years ago and it has just been reduced. This is MOST likely to be because Leonard:

Caroline is a member of a pension scheme that provides benefits at retirement that are the higher of benefits calculated on a defined benefit basis and the benefits arising from a notional money purchase plan. This is an example of:

An industry working group Code of Good Practice has been set up in respect of defined benefit scheme incentive exercises. Under this Code, it is not possible to run an incentive exercise on an opt out basis for those who are over: