Chapter 9 Flashcards
What percentage of Cat A contributions are needed for a Cat B dependent pension?
60%
Over 18 years out of 30 years
When do each additional pensions run from and to?
Graduate - 1961 - 1975 (films 60’s/70’s)
SERP8 - 1978 - 2002
S2S - 2002 - 2016 - two thousand and two
All count towards LTA & can take normal PCLS & OMO
Can a self-employed have an additional pension?
No
What state benefits apply from 2016?
Min of 10 years, Full at 35 years, Inc by Triple Lock and No spouses benefit
What happens if the starting/foundation amount is higher than the current State Pension
If higher than £155.65 per week then a protected payment - this Increases by CPI. Paid IN ADDITION to State Pension
Who is likely to have more than the new state pension?
Older, majority of life working, not contracted out for long
When can NIC 3 contributions be extended to
If SPA on/after 06/04/16 and payment by 05/04/23
What benefits does Class 3A provide
Inc Increase by CPI, 50% spouse, higher level of Additional State Pension
Which benefits increase by CPI?
GRB
SERPS
S2P
Class 3A
Protected payment
How do you calculate the lump sum paid from deferring a pre 06/04/16 penison
£141.85 (current) x 10.4% (annual) x no of years deferred
Every 5 weeks increase by 1% so 12 months have option of lump sum
How is the State Pension Taxed?
Paid Gross (check if below personal allowance).
If working then through employer PAYE
If another pension then PAYE from other plan
How much tax is paid on deferred lump sum?
The current rate of income tax - CANNOT move the client into a higher band.
Ignore what they were earning when retired.
When does the SPA increase
67 BY 2028
What conditions apply to bereavement support?
Spouse must be under SPA
Higher entitlement if pregnant or being paid child benefit (under 16 or under 20 in full time education)
How much S2P can be inherited?
50% Maximum
