Term
Which areas are usually covered by the Trust Deed and Rules? (11) State which documentation covers which area. |
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Definition
General - Deed Trustee Powers and Duties - Deed Administration of the Scheme - Deed or Rules Membership - Rules Contributions - Rules Benefits on Retirement - Rules Benefits on Death - Rules Leaving Service and Preservation of Benefits - Rules Tax Legislation - Rules Contracting Out - Rules Pension Sharing on Divorce - Rules
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Term
| In General, what does the Trust Deed Cover? (11) |
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Definition
Date of the deed Parties to the deed Appointment of the first trustees Recitals of previous deeds Definitions Statement that the assets are held upon irrevocable trusts Power of amendment Provision for participation of new employers Powers to augment benefits Reconstruction Winding up of the scheme
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Term
What are the provisions in the Trust Deed in relation to: Trustees Powers and Duties (17) |
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Definition
Appointment and removal of trustees Duty to administer and manage the scheme Conduct of trustees, their meetings and resolutions Power to invest assets Funding of the scheme Accounts and audit of the scheme Operation of bank accounts Power to insure assets Power to raise and borrow money Power to account for and deduct tax Payment of scheme expenses Appointment of actuary, auditor, fund manager Power to take and to act on advice Employment of agents Trustees' indemnities and insurance Power to delegate certain duties Buyout of benefits and the purchase of annuities.
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Term
What are the provisions in the Trust Deed or Rules in relation to: Administration of the Scheme (10) |
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Definition
Absence - i.e. maternity, etc Notices to beneficiaries Residence of members and beneficiaries Mechanics of payment of benefits Production of information regarding age/health Errors in any statements given by members Forfeiture of unclaimed benefits Incapacity of beneficiary Employer's lien or set off Prohibition on the assgnment of benefits.
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Term
What are the provisions in the Rules in relation to: Membership (5) |
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Definition
Eligibility Conditions of membership, entry forms and contribution levels opting-out and rejoining Transfers in Waiver of conditions
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Term
What are the provisions in the Rules in relation to: Benefits on Death (5) |
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Definition
Death of a member Death of a pensioner Death of a deferred member Dependants' pensions Discretionary Trusts
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Term
What are the provisions in the Rules in relation to: Tax Legislation (3) |
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Definition
Discretion to make unauthorised payments Right to recover tax HMRC benefit limits (if relevant since A-Day)
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Term
| Outline the main features of the registration process. (3) |
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Definition
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Term
Under the terms of an Insurance Policy, what must the policy specify? (3) What additonal specifications are required for Group contracts? (6) |
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Definition
Rate of premium to apply and the terms on whcih the insurer can revise them Inclusion of further members Grant on further increases in benefits Dealing with payments of benefits other than at normal retirement date Details of pension options With profits schemes - details of bonus distributions
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Term
| What are the 'correspondence requirements' in relation to insurance contracts? |
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Definition
The liabilities of the insurance company under the policy must correspond with the liabilities under the pension scheme. The policy cannot provide any additional benefits that are not included in the scheme.
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Term
Why would an insurance contract require to be amended? (3) What is the process of amending insurance contracts? (3) |
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Definition
reflect T&C's offered by insurer reflect amendments to rules which affect benefits insured comply with legislative changes
Amendments are noted or 'endorsed' on the policy documents Endorsements is prepared by insurer and adopted by the trustees/employer May require amendment to the trust deed and rules
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Term
When establishing a pension scheme, the employer will usually issue an initial announcement letter to employees. What will this letter include? (5) |
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Definition
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Term
| What Regulations require certain basic information about a scheme to be given to members within 2 months of joining? |
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Definition
| Occupational Pension Schemes (Disclosure of Information) Regulations 1996 |
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Term
| What information do trustees need to give to members to satisfy the Occupational Pension Schemes (Disclosure of Information) Regulations 1996. (9) |
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Definition
Eligibility opting out and rejoining Contributions Contracting out info Scheme benefits Age at which members have the right to retire right to Cash equivalents and transfer values Internal dispute procedures Address for scheme enquiries.
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Term
The announcement of the intention to set up a pension scheme will usually make reference to the scheme booklet. Write notes on the scheme booklet. (6) |
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Definition
Purpose: to communicate principal provisions of scheme Needs to be sufficiently detailed to enable members to understand benefits they are entitled to. How much it will cost them to participate Form: make clear that it is a guide to the main provisions but the TDR will override any case of conflict. Where booklet is issued by employer, it may become part of the employees' contractual rights Ombudsman will look at all info given to member and may determine the member's expectations on the basis of tht information rather than on the scheme rules
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Term
| Notes of 'Encouraging Employees to Join the Scheme' (5) |
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Definition
membership cannot be compulsory employer may use booklet to 'sell', comparing benefits provided with alternatives circulars and presentations must be careful not to be seen as giving financial advice - unlawful automatic enrolment into Personal Accounts from 2012
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Term
Expression of wish form: Introductory Notes (3) List of people who can receive benefits (7) Subsequent Notes (5) |
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Definition
Lump sum death benefits payable under discretionary trust avoids inheritance tax trustees have discretion over which relatives/dependants should receive the benefit and in what proportions spouse civil partners children (including adopted) other relatives persons dependent on the member anybody named in member's estate charities or other associations
members invited to complete Expression of Wish opportunity to nominate beneficiaries and proportions make clear that trustees are not bound by form and have power to depart otherwise trustees don't have genuine discretion - inheritance tax advantage lost enquiries made into members' personal circumstances - especially relevant if form is old and circumstances have changed.
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Term
| Notes on Exchange of Letters form of established a pension arrangement |
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Definition
EFRBS usually set up for individuals - directors/executives registered or unregistered Unregistered: funded or unfunded employer rights formal letter to individual setting out benefits payable individual signs to accept the terms employer and individual should retain a copy board resolution
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