Friday Five Focus on Pensions – 2 July – 5 Questions in 5 Minutes

Friday Five Focus on Pensions – 5 Questions in 5 Minutes Every Friday

What’s this all about?

Each week, we ask questions relating to one of these topics: Investments, Taxation, Pensions, Protection, or Regulation. This week, our Friday Five is relevant to Pensions; this is useful as you prepare for the CII’s R04, AF7, or J05 exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

IMPORTANT! These questions relate to examinable tax year 2020/21, examinable by the CII until 31 August 2021. They do not relate to tax year 2021/22 which is only examinable by the CII from 1 September 2021.

1. Which type of pension arrangement will always provide benefits via a scheme pension?
   1. A Retirement Annuity Contract
   2. A defined benefit pension scheme
   3. A Small Self-Administered Scheme
   4. A defined contribution occupational scheme

2. Being “fit and proper” to undertake the role is a test that could be used by the Pension Regulator in assessing the appropriateness of the:
   1. Scheme Administrator.
   2. Scheme Trustee.
   3. Employer.
   4. Scheme Actuary.

3. When dealing with pension benefits on divorce, one of the key advantages of pension sharing compared to earmarking is that:
   1. the timing of drawing benefits is not inter-dependent.
   2. the arrangement does not require a court order.
   3. lower administration charges apply from the pension provider.
   4. the benefits will be less severely taxed.

4. Pension input periods run from:
   1. 5 April – 6 April.
   2. 1 March – 29 February.
   3. 30 April – 29 March.
   4. 6 April – 5 April.

5. Freyja is hoping to qualify for a new State pension. To do so, she should be aware that she must: Tick all that apply.
   1. have a minimum of 10 qualifying years to receive any new State pension.
   2. have at least 35 qualifying years to receive a full new State pension.
   3. reach their State pension age on or after 6 April 2016.
   4. have been employed or self-employed for at least 10 years.

Answers

1. B – See R04 Study Text, Chp 3
   Grab our taster mock exam paper for CII R04. Click here to download.

2. B – See R04 Study Text, Chp 4
   Grab our taster mock exam paper for CII R04. Click here to download.

3. A – See R04 Study Text, Chp 4
   Grab our taster mock exam paper for CII R04. Click here to download.

4. D – See R04 Study Text, Chp 2
   Grab our taster mock exam paper for CII R04 Click here to download.

5. ABC – See R04 Study Text, Chp 9
   Grab our taster mock exam paper for CII R04. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.