VOCATIONAL QUALIFICATIONS

Transcription

1 VOCATIONAL QUALIFICATIONS LEAVERS PART 2 LEAVERS BENEFITS WITH SPECIAL CIRCUMSTANCES THURSDAY 5 NOVEMBER 2015 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. WILL ALLINSON (OPQ) 2. THERESA DIXON (XYZ) 3. IAN MILLER (RST) 4. TRACEY STEPHENS (XYZ) 5. JAY NICHOLLS (OPQ) Section B 6. Write a letter explaining the benefits payable and the options available to IAN MILLER. 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 OPQ SCHEME LEAVERS PART 2 QUESTION 1 Event history Date of first event 02/11/2015 First event LEAVER Date of second event Second event Member details Surname ALLINSON Forenames WILL Date of birth 09/04/1963 Gender MALE Spouse's date of birth 08/08/1969 Dependent child's date of birth Date of joining company 17/03/2007 Date of joining scheme 17/03/2007 Target retirement date 09/04/2018 Annual salary history for the scheme year commencing 6 April ,623 25,541 26,432 26,432 27,823 28,524 29,613 30,000 31,512 Contribution history Total member's normal contributions 11, Total employer s normal contributions 18, Total member's AVCs

4 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 3, , 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 18 May 2009, Will Allinson transferred the value of his benefits from an individual personal pension arrangement into his Personal Retirement Account. The transfer value of 6, purchased an additional 1, units in the Lifestyle Fund. These units are not included in the Unit Holdings detailed above. Will Allinson s reason for leaving was resignation. LEAVERS 2 QUESTION 1

5 CASE STUDY DETAILS XYZ SCHEME LEAVERS PART 2 QUESTION 2 Event history Date of first event 01/11/2015 First event LEAVER Date of second event Second event Member details Surname DIXON Forenames THERESA Date of birth 26/07/1972 Gender FEMALE Spouse s date of birth 22/06/1983 Dependent child s date of birth Date of joining company 03/05/1996 Date of joining scheme 03/06/1996 Category of membership A Basic pay and lower earnings limit history for the scheme year commencing 6 April Salary 27,234 28,623 28,623 29,652 29,652 30,513 30,513 30,613 30,613 L.E.L 4,524 4,680 4,940 5,044 5,304 5,564 5,668 5,772 5,824 Contribution history Total member s normal contributions 31, Total member s AVCs Current value of AVCs

6 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 Theresa Dixon worked full time (five days a week) from the date she joined the Company up until 31 December 1996, inclusive. She then reduced her working week to three days for the period from 1 January 1997 to 17 June 1998, inclusive. Theresa Dixon resumed working on a full-time basis from 18 June 1998 onwards. Theresa Dixon s reason for leaving was redundancy. LEAVERS 2 QUESTION 2

7 CASE STUDY DETAILS RST SCHEME LEAVERS PART 2 QUESTION 3 Event history Date of first event 02/11/2015 First event LEAVER Date of second event Second event Member details Surname MILLER Forenames IAN Date of birth 07/11/1968 Gender MALE Spouse s date of birth 07/12/1972 Dependent child s date of birth Date of joining company 04/10/2003 Date of joining scheme 06/04/2004 Earnings history for the scheme year ending 5 April ,613 34,724 35,713 35,713 36,834 37,234 37,513 38,534 38,974 Contribution history Total member s normal contributions 22, Total member s AVCs Current value of AVCs

8 Pre 6 April 2006 pension accrued as at 5 April 2015 CARE pension (per annum) Post 5 April 2006 pension accrued as at 5 April 2015 CARE pension (per annum) 5, Special circumstances / additional information Contractual Salary at date of first event 37, On 6 December 2009, the Company (with the consent of the Trustees) agreed to enhance the accrual rate for Ian Miller s CARE Pension to 1/60ths of his Pensionable Earnings for all Pensionable Service from that date onwards. It was agreed by the Company that the enhancement to the accrual rate should not apply in the calculation of the Final Salary Underpin Pension. THIS QUESTION ALSO REQUIRES A LETTER (QUESTION 6) LEAVERS 2 QUESTION 3

9 CASE STUDY DETAILS XYZ SCHEME LEAVERS PART 2 QUESTION 4 Event history Date of first event 01/11/2015 First event LEAVER Date of second event Second event Member details Surname STEPHENS Forenames TRACEY Date of birth 13/07/1976 Gender FEMALE Spouse s date of birth Dependent child s date of birth Date of joining company 06/11/1997 Date of joining scheme 06/11/1997 Category of membership B Basic pay and lower earnings limit history for the scheme year commencing 6 April Salary 53,242 54,235 56,245 58,252 59,623 61,351 63,156 64,876 65,163 L.E.L 4,524 4,680 4,940 5,044 5,304 5,564 5,668 5,772 5,824 Contribution history Total member s normal contributions 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) Contribution equivalent premium Certified amount Special circumstances / additional information Final Pensionable Salary at 3 July , Lower of 5.0% / RPI increases from 4 July 2011 to date of first event is 14.21%. Following her divorce, a pension sharing order was applied to Tracey Stephens benefits on 17 November This required an annual reduction (in the form of a pension debit) to be calculated at this date. The amount of the pension debit was 1, per annum, which should be revalued by the lower of 5.0% / RPI from the day after the pension sharing order was applied to the date of the first event. The revalued pension debit should be deducted from Tracey Stephens overall preserved pension at the date of the first event to derive her net preserved pension at this date. Lower of 5.0% / RPI increases from 18 November 2011 to date of first event is 13.72%. Tracey Stephens reason for leaving was resignation. LEAVERS 2 QUESTION 4

11 CASE STUDY DETAILS OPQ SCHEME LEAVERS PART 2 QUESTION 5 Event history Date of first event 02/11/2015 First event LEAVER Date of second event Second event Member details Surname NICHOLLS Forenames JAY Date of birth 19/07/1982 Gender MALE Spouse's date of birth 01/09/1975 Dependent child's date of birth Date of joining company 27/03/2015 Date of joining scheme 27/03/2015 Target retirement date Annual salary history for the scheme year commencing 6 April ,976 Contribution history Total member's normal contributions 1, Total employer s normal contributions 1, Total member's AVCs 4,652.43

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 Unit Holdings Global Equity Fund Index Linked Bond Fund Balanced Fund 1, Corporate Bond Fund Cash Fund Lifestyle Fund 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 Jay Nicholls reason for leaving was resignation. LEAVERS 2 QUESTION 5