Friday Five Focus on Pensions – 5 Questions in 5 Minutes – 26 Dec 2025

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 2025/26, examinable by the CII until 31 August 2026.

1. Members with safeguarded benefits have a statutory right to request a CETV once in every
   1. 3-month period.
   2. 6-month period.
   3. 12-month period.
   4. 18-month period.

2. A self-employed individual can obtain higher rate tax relief on personal pension contributions by
   1. reducing their first payment on account by the amount of tax relief.
   2. reducing their second payment on account by the amount of tax relief.
   3. reducing their balancing payment by the amount of the tax relief.
   4. paying the pension contributions net of higher rate tax.

3. 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.

4. What was introduced for occupational defined contribution pension schemes using master trusts as part of the Pension Schemes Act 2017?
   1. A requirement for authorised schemes to submit monthly accounts to The Pensions Regulator.
   2. A requirement for schemes to submit monthly supervisory returns.
   3. Financial Conduct Authority powers to withdraw authorisation from a failing scheme.
   4. A requirement for those involved in the scheme to be ‘fit and proper’.

5. Where an unauthorised member payment is made after the death of the member, liability for payment of the unauthorised member payment charge would fall on the
   1. member’s estate.
   2. recipient of the payment.
   3. scheme administrator.
   4. sponsoring employer.

Answers

1. C; See R04 Study Text, Chp 5; Rationale: Benefits held in a defined benefits scheme are safeguarded benefits. Members with safeguarded benefits have a statutory right to request a CETV once every 12 months.
2. C; See R04 Study Text, Chp 2; Rationale: The self-employed pay income tax in 3 instalments; 2 payments on account (31st January in the tax year and 31st July following the end of the tax year – both 50% of the previous year’s tax bill) and a 3rd, the balancing payment, payable on 31st January following the tax year (= actual tax bill for the current tax year less the previous 2 payments and any tax relief due on pension contributions). Therefore, the answer is c).
3. D; See R04 Study Text, Chp 3; Rationale: If HMRC withdraws registration of a registered pension scheme, a de-registration income tax charge of 40% of the total value of the funds (those held immediately before registration) is levied on scheme. This is payable by the scheme administrator.
4. D; See R04 Study Text, Chp 6; Rationale: The Pension Schemes Act 2017 introduced the requirement that, to be authorised, persons involved in the scheme should be ‘fit and proper’. Under the Act, The Pensions Regulator (TPR) not the FCA have powers to withdraw authorisation from a failing scheme. ‘Trigger events’ must be reported to TPR.
5. B; See R04 Study Text, Chp 3; Rationale: Where an unauthorised member payment is made after the death of the member then responsibility for the tax charge would fall on the recipient.

Grab the resources you need!

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