You Can Never Do Enough Pension Questions!

This article is relevant to anybody who wants to further their career in the financial services industry, whether you are at Certificate Level or Diploma Level.

We’ve had quite a few pension queries over the past few weeks so we’ve decided to include a question and answer for you here regarding state benefits on bereavement.

For a free taster J04 mock paper go to http://www.brandft.co.uk/df/j04mockq.asp and enter your name and email address. We will then email it to you.

We also have 3 full sets of mock questions plus a calculation workbook for J04 to purchase at http://www.brandft.co.uk/df/j04.asp

Following a tragic accident at work, Bill, age 53, has unfortunately died and you are giving his 55 year old widow Eve, some initial advice on any State benefits to which she might be entitled.

a) Outline 4 requirements to be met if Eve is to receive any Bereavement Payment and comment on any tax implications of payment. (4)

b) Outline 3 requirements to be met if Eve is to receive any Bereavement Allowance and again, comment on any tax implications of payment and duration. (4)

Model answer

a)
– £2000, tax free will be paid as death was caused by his job
– Eve was not connected with any unlawful killing of Bill
– Eve is under state pension age
– Bill was not receiving the basic state pension
– Eve was not living with someone else at the time of death

b)
– payment is taxable
– payable for 52 weeks
– death caused by Bill’s job
– Eve is over age 45
– Eve is not entitled to a Widowed Parent’s Allowance

CII J04 Study Text Cross Reference : Chapter 4, Section F1

For a free taster J04 mock paper go to http://www.brandft.co.uk/df/j04mockq.asp and enter your name and email address. We will then email it to you.

We also have 3 full sets of mock questions plus a calculation workbook for J04 to purchase at http://www.brandft.co.uk/df/j04.asp