Friday Five Focus on Pensions – 28 January – 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 2021/22, examinable by the CII until 31 August 2022.

1. The Pension Ombudsman would be expected to investigate problems concerning:
   1. the sale of a Stakeholder pension.
   2. the amount payable under the State pension.
   3. the appropriateness of a new Trustee to a company pension scheme.
   4. the marketing of a Self-invested personal pension plan.

2. If HM Revenue & Customs (HMRC) withdraws registration of a registered pension scheme, then a de-registration income tax charge will be levied. This amounts to:
   1. 40% of the prohibited assets which caused the scheme to be de-registered.
   2. 15% of the fund value held immediately before de-registration.
   3. 25% of the fund value held immediately before de-registration.
   4. 40% of the total value of funds held immediately before de-registration.

3. Sally is currently paying Class 3 National Insurance contributions (NICs). This would indicate that she is:
   1. self-employed.
   2. employed.
   3. earning less than the Lower Earnings Threshold.
   4. rectifying a shortfall in her record of NICs.

4. Frank’s pension complaint has been accepted by the Financial Ombudsman Service for investigation because Frank believes:
   1. his State Pension forecast is incorrect.
   2. his pension plan was ill-advised at inception 10 years ago.
   3. he was wrongly advised to transfer his pension.
   4. the information received from the trustees of his DB scheme is wrong

5. Sally was in capped drawdown on 5 April 2015. She took the maximum PCLS from a fund that was worth £385,000. Sally’s GAD rate is £53 per £1,000, what is the maximum income Sally is entitled to?
   1. £15,304
   2. £18,365
   3. £22,956
   4. £30,608

Answers

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

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

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

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

5. C – See R04 Study Text, Chp 8
   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.