VOCATIONAL QUALIFICATIONS

Transcription

1 VOCATIONAL QUALIFICATIONS LEAVERS PART 2 LEAVERS BENEFITS WITH SPECIAL CIRCUMSTANCES THURSDAY 9 MARCH 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. ALAN ASKER (OPQ) 2. DAKOTA NORTH (XYZ) 3. ALLAN BAMMER (RST) 4. LOUISE SAGNA (OPQ) 5. HARRY ZONA (XYZ) Section B 6. Write a letter explaining the benefits payable and the options available to LOUISE SAGNA. 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 PLAN LEAVERS PART 2 QUESTION 1 Event history Date of first event 04/03/2017 First event LEAVER Date of second event Second event Member details Surname ASKER Forenames ALAN Date of birth 01/01/1961 Gender MALE Spouse's date of birth 04/07/1968 Dependent child's date of birth Date of joining company 16/09/2015 Date of joining plan 16/09/2015 Target retirement date 01/01/2021 Annual salary history for the plan year commencing 6 April , ,000 Contribution history Total member's normal contributions 11, Total employer s normal contributions 18, Total member's AVCs 6,038.13

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 Unit Holdings Global Equity Fund 1, , Index Linked Bond Fund Balanced Fund Corporate Bond Fund Cash Fund 7, , Lifestyle Fund 1, 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 Alan Asker 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 04/03/2017 First event LEAVER Date of second event Second event Member details Surname NORTH Forenames DAKOTA Date of birth 03/07/1957 Gender FEMALE Spouse s date of birth Dependent child s date of birth Date of joining company 12/07/1985 Date of joining scheme 12/08/1985 Category of membership A Pensionable salary history for the scheme year commencing 6 April ,035 53,400 53,400 54,034 55,064 56,043 57,841 57,916 58,314 Contribution history Total member s normal contributions 108, 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) 1, Contribution equivalent premium Certified amount Special circumstances / additional information Dakota North 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 1990, Dakota North varied her contribution rate to build up the following rates of pension accrual: 6 April 1990 to 5 April 2003 = 80ths 6 April 2013 onwards = 60ths Dakota North 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 19/03/2017 First event LEAVER Date of second event Second event Member details Surname BAMMER Forenames ALLAN Date of birth 17/03/1976 Gender MALE Spouse s date of birth 18/05/1980 Dependent child s date of birth Date of joining company 18/06/2003 Date of joining scheme 06/04/2004 Earnings history for the scheme year ending 5 April ,645 24,435 24,675 24,675 25,675 26,000 27,000 28,500 30,000 Contribution history Total member s normal contributions 18, Total member s AVCs Current value of AVCs

8 Pre 6 April 2006 pension accrued as at 5 April 2016 CARE pension (per annum) Post 5 April 2006 pension accrued as at 5 April 2016 CARE pension (per annum) 3, Special circumstances / additional information Contractual Salary at date of first event (full-time equivalent) 30, Contractual Salary at date of first event (actual) 18, Allan Bammer worked full time (five days a week) from the date he joined the Company until 13 May 2007, inclusive. From 14 May 2007, Allan Bammer varied his working week as follows: 14 May 2007 to 16 August 2013 = four days a week 17 August 2013 onwards = three days a week Allan Bammer s reason for leaving was resignation. LEAVERS 2 QUESTION 3

9 CASE STUDY DETAILS OPQ PLAN LEAVERS PART 2 QUESTION 4 Event history Date of first event 06/03/2017 First event LEAVER Date of second event Second event Member details Surname SAGNA Forenames LOUISE Date of birth 17/02/1965 Gender FEMALE Spouse's date of birth Dependent child's date of birth Date of joining company 17/06/1993 Date of joining plan 17/06/1993 Target retirement date 17/08/2020 Annual salary history for the plan year commencing 6 April ,645 82,645 83,465 84,160 85,365 86,740 87,650 88,000 89,000 Contribution history Total member's normal contributions 96, Total employer s normal contributions 154, Total member's AVCs

10 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 25, , 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 In recognition of Louise Sagna recently completing a significant project, the Company (with the consent of the Trustees) made a special one-off augmentation payment of 25,000 on 28 February 2017 into Louise Sagna s Personal Retirement Account. This payment purchased an additional 24, units in the Cash Fund. These units are not included in the Unit Holdings detailed above. Louise Sagna s reason for leaving was resignation. THIS QUESTION ALSO REQUIRES A LETTER (QUESTION 6) LEAVERS 2 QUESTION 4

11 CASE STUDY DETAILS XYZ SCHEME LEAVERS PART 2 QUESTION 5 Event history Date of first event 02/03/2017 First event LEAVER Date of second event Second event Member details Surname ZONA Forenames HARRY Date of birth 12/08/1981 Gender MALE Spouse s date of birth 18/09/1983 Dependent child s date of birth 21/03/2004 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 ,674 37,345 37,965 38,342 40,348 41,384 42,375 46,374 43,276 Contribution history Total member s normal contributions Total member s AVCs Current value of AVCs

12 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 Harry Zona s Final Pensionable Salary at 3 July 2011 was 38, Lower of 5% / RPI increases from 4 July 2011 to date of first event is 17.9%. On 15 May 2001, Harry Zona transferred into the XYZ Pension and Life Assurance Scheme 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 23, consisted entirely of employer contributions and provided Harry Zona with an additional 2 years and 47 days of Pensionable Service in the XYZ Pension and Life Assurance Scheme. The transferred-in benefits are subject to the normal rules of the XYZ Pension and Life Assurance Scheme. Harry Zona s reason for leaving was resignation. LEAVERS 2 QUESTION 5