Pensions Test Questions

1. Discover to what figure the basic state pension has been raised.

2. What is excluded from a person's average earnings in assessing the state earnings-related pension?


3. Who pays for the state pension?

4. Discover the present percentage figure of current earnings required to be paid in National Insurance contributions by employees and by employers.

5. If inflation continues after your retirement will the real value of your state pension fall?

6. What is meant by an occupational pension scheme?

7. Distinguish between a benefit-related and a money-purchase scheme.

8. In a benefit-related scheme, describe two bases on which the pension benefit may be calculated.

9. What benefits may be included in any occupational pension scheme other than a pension for your own lifetime?

0. Explain why an employer's liability for contributions to a final-earnings group pension scheme is open-ended.

1. Mention the three main features of a fully funded pension scheme.

2. Why is a money-purchase scheme likely to be less costly to an employer than a benefit-related scheme?

3. Explain the options available to you regarding your company pension rights on changing jobs (a) in a group benefit-related scheme, and (b) in a money-purchase scheme.

4. Explain the significance of being contracted out of the earnings-related state pension.

Other Benefits

Widow's pension and death-in-service benefits can be included in money-purchase schemes exactly as with final-earnings schemes.

On leaving the employment

Changing employers does not present quite such a problem over pension rights under a money-purchase scheme as with a final-earnings scheme. The following options are usually available.

1. Your rights under the scheme to date may be preserved for payment on retirement, the pensions policy (if one has been issued) being made paid-up.

2. If a pension policy has been issued it may be transferred from the old employer... see: Other Benefits

Refunds, Personal And Business Finance 2017

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