VOCATIONAL QUALIFICATIONS

Transcription

1 VOCATIONAL QUALIFICATIONS LEAVERS PART 2 LEAVERS BENEFITS WITH SPECIAL CIRCUMSTANCES THURSDAY 7 SEPTEMBER 2017 TIME ALLOWED: 9.30 AM PM 3 HOURS 1. Answer ALL the questions. 2. Write all your answers in the answer book provided. 3. Begin each question on a new page. 4. Show all workings clearly. 5. Calculate the benefits using only the information given. 6. Factors must be rounded in accordance with the instruction in the Table of Factors. Round all other figures to two decimal places (or whatever is the normal practice where you work).

2 Questions Section A Calculate the leaver benefits / options for: 1. JEREMY BLACK (XYZ) 2. THERESA WATSON (RST) 3. TOM CABLE (RST) 4. AMBER ABBOTT (XYZ) 5. VINCE STURGEON (OPQ) Section B 6. Write a letter explaining the benefits payable and the options available to AMBER ABBOTT. The letter may be addressed either to the member or to the Trustees (whichever is the normal practice in the organisation for which you work). Please note: Candidates must not sign letters with their own names. Letters should be signed A N Other.

3 CASE STUDY DETAILS XYZ SCHEME LEAVERS PART 2 QUESTION 1 Event history Date of first event 01/09/2017 First event LEAVER Date of second event Second event Member details Surname BLACK Forenames JEREMY Date of birth 23/09/1983 Gender MALE Spouse s date of birth 21/08/1984 Dependent child s date of birth Date of joining company 06/11/1997 Date of joining scheme 06/11/1997 Category of membership B Pensionable salary history for the scheme year commencing 6 April ,623 27,452 32,163 32,268 34,623 35,842 36,723 37,342 38,325 Contribution history Total member s normal contributions Total member s AVCs Current value of AVCs

4 Contracting-out details at date of first event Pre 06/04/1988 GMP (per annum) Post 05/04/1988 GMP (per annum) Contribution equivalent premium Certified amount Special circumstances / additional information Jeremy Black s Final Pensionable Salary at 3 July , Lower of 5.0% / RPI increases from 4 July 2011 to date of first event is 19.7%. Jeremy Black worked full time (five days a week) from the date he joined the Company until 12 June 2000, inclusive. From 13 June 2000, Jeremy Black varied his working week as follows: 13 June 2000 to 17 September 2011, inclusive = two days a week 18 September 2011 onwards = three days a week Jeremy Black s reason for leaving was resignation. LEAVERS 2 QUESTION 1

5 CASE STUDY DETAILS RST SCHEME LEAVERS PART 2 QUESTION 2 Event history Date of first event 03/09/2017 First event LEAVER Date of second event Second event Member details Surname WATSON Forenames THERESA Date of birth 12/04/1986 Gender FEMALE Spouse s date of birth 14/03/1985 Dependent child s date of birth Date of joining company 12/06/2015 Date of joining scheme 06/04/2016 Earnings history for the scheme year ending 5 April ,723 Contribution history Total member s normal contributions 2, Total member s AVCs 1, Current value of AVCs 1,631.78

6 Pre 6 April 2006 pension accrued as at 5 April 2017 CARE pension (per annum) Post 5 April 2006 pension accrued as at 5 April 2017 CARE pension (per annum) Special circumstances / additional information Contractual Salary at date of first event 25, Theresa Watson s reason for leaving was resignation. LEAVERS 2 QUESTION 2

7 CASE STUDY DETAILS RST SCHEME LEAVERS PART 2 QUESTION 3 Event history Date of first event 01/09/2017 First event LEAVER Date of second event Second event Member details Surname CABLE Forenames TOM Date of birth 23/07/1966 Gender MALE Spouse s date of birth 21/06/1965 Dependent child s date of birth Date of joining company 11/09/1987 Date of joining scheme 06/04/1988 Earnings history for the scheme year ending 5 April ,135 84,123 84,654 85,125 86,672 87,351 88,351 89,513 90,351 Contribution history Total member s normal contributions 131, Total member s AVCs Current value of AVCs

8 Pre 6 April 2006 pension accrued as at 5 April 2017 CARE pension (per annum) 15, Post 5 April 2006 pension accrued as at 5 April 2017 CARE pension (per annum) 11, Special circumstances / additional information Contractual Salary at date of first event 92, In recognition of Tom Cable having recently completed a significant project, the Company (with the consent of the Trustees) agreed to provide him with an additional 1 year and 3 months of Pensionable Service in the RST Pension Scheme. The Company met the cost of providing this additional service. The additional service is subject to the normal rules of the RST Pension Scheme and should be treated as post 5 April 2006 service. The additional service is not included in the figures shown above. For the purpose of any comparisons, the additional service should be included in the CARE Pension but excluded from the Underpin Pension. Tom Cable s reason for leaving was resignation. LEAVERS 2 QUESTION 3

9 CASE STUDY DETAILS XYZ SCHEME LEAVERS PART 2 QUESTION 4 Event history Date of first event 04/09/2017 First event LEAVER Date of second event Second event Member details Surname ABBOTT Forenames AMBER Date of birth 08/05/1968 Gender FEMALE Spouse s date of birth Dependent child s date of birth Date of joining company 13/08/1987 Date of joining scheme 13/09/1987 Category of membership A Pensionable salary history for the scheme year commencing 6 April ,426 40,163 41,256 41,724 42,853 43,954 44,742 45,920 46,861 Contribution history Total member s normal contributions 86, Total member s AVCs Current value of AVCs

10 Contracting-out details at date of first event Pre 06/04/1988 GMP (per annum) Post 05/04/1988 GMP (per annum) 1, Contribution equivalent premium Certified amount Special circumstances / additional information Amber Abbott paid the default contribution rate (70ths accrual) from the date she joined the XYZ Pension and Life Assurance Scheme until 5 April From 6 April 1993, Amber Abbott varied her contribution rate to build up the following rates of pension accrual: 6 April 1993 to 5 April 2010, inclusive = 60ths 6 April 2010 onwards = 80ths Amber Abbott s reason for leaving was resignation. THIS QUESTION ALSO REQUIRES A LETTER (QUESTION 6) LEAVERS 2 QUESTION 4

11 CASE STUDY DETAILS OPQ PLAN LEAVERS PART 2 QUESTION 5 Event history Date of first event 02/09/2017 First event LEAVER Date of second event Second event Member details Surname STURGEON Forenames VINCE Date of birth 12/04/1965 Gender MALE Spouse's date of birth Dependent child's date of birth Date of joining company 12/07/2011 Date of joining plan 12/07/2011 Target retirement date 12/10/2021 Annual salary history for the plan year commencing 6 April ,161 43,161 44,723 45,133 46,421 47,235 Contribution history Total member's normal contributions 13, Total employer s normal contributions 21, Total member's AVCs

12 Personal Retirement Account details Member s Current Unit Holdings Fund Member s normal contributions Employer s normal contributions Member s AVCs Unit Holdings Unit Holdings Global Equity Fund Index Linked Bond Fund Balanced Fund Corporate Bond Fund Cash Fund Lifestyle Fund 2, , Unit Holdings Investment Fund Unit Prices Fund Current Unit Price ( ) Global Equity Fund Index Linked Bond Fund Balanced Fund Corporate Bond Fund Cash Fund Special circumstances / additional information On 15 August 2017, Vince Sturgeon transferred into the OPQ Retirement & Death Benefits Plan the value of his Money Purchase benefits from a non-contracted out registered pension scheme of one of his former employers. The transfer value of 9, consisted entirely of employer contributions. This payment purchased an additional 2, units in the Balanced Fund. These units are not included in the Unit Holdings detailed above. Vince Sturgeon s reason for leaving was resignation. LEAVERS 2 QUESTION 5