养老金答案

养老金答案 1. I will give some suggest that Robert and Iona history of contribution to National Insurance Scheme. 1) Contributions of National Insurance (NI) are compulsory being charged on earnings from employment or profits from self-employment above certain minimum amounts. 2) NI contributions will fund in part and provides protection against sickness and unemployment. 3) Payment of enough contributions towards NI will entitle the member to receive a basic state pension at retirement; 4) The state basic pension will be paid in full if an individual has been credited with NI contributions for the majority of that individuals working life; 5) The basic State pension is a government-administered pension; 6) The number of qualifying years and people normally need for a full basic State Pension is equal to about 90 per cent of their working life; 7) Anyone who has worked and paid enough NI contributions for a set number of years should be eligible for the basic state pension; 8) The amount people are entitled to depend on the number of years people have worked and the amount of NI contributions people have paid; 9) Men usually have to have been credited with contributions for 44 years and women for 39 years to qualify for the full basic State pension; 10) These are years in which people have received qualifying earnings and paid NI contributions; 2. In the case, Robert and Iona have been married for 24 years. The main benefits of SERPS as they relate to Iona. 1) State Earnings Related Benefits Scheme. SERPS was introduced in the 1970s to provide a level of earnings-related pension benefit on top of the SBP. From April 2002, SERPS has been replaced by the S2P, but SERPS benefits earned up to that date are preserved. 2) SERPS should have provided a partial replacement of band earnings. 3) These are the figures that also define the earnings upon which S2P benefits are based. 4) Earned income was less than the LEL did not qualify for basic and SERPS benefits 5) Only for employees and self-employed were excluded. 6) Married women who continue to pay reduced rate NICs. 1 3. About the rules regarding eligibility for membership of defined contribution schemes. 1) Defined Contributions Plans (DC) is determined by the amount he or she has contributed, the amount of employer contribution, and the performance of the market. 2) A typical arrangement may be: the worker contributes 5 percent of his or her salary in the plan and the firm contributes 10 percent. 3) There is no guaranteed benefit level at retirement 4) The employee absorbs all the risk 5) The employer’s liability ends after the money is contributed into the fund. 6) The plan is portable. 7) Investment return on those contributions 8) Contributions paid into the scheme 9) Cost of purchasing an annuity at retirement 4. About the FSAVC : 1)Open to all active members of UK occupational pension scheme. 2) Up to15% of salary, subject to earnings cap for 89 members made to the employer’s scheme as a condition of membership and any AVCs. 3) Regular and single premiums are paid net of basic rate tax. Higher rate taxpayers can recover any extra relief via their self assessment. Tax relief is not available on any transfer payments paid into the plan. 4) Employee is free to choose from the range of investment funds available from the provider. 5) Retirement before age 50 is allowed: those in certain occupations subject to Revenue approval. 6) If scheme has adopted AVC flexibility rules benefits can be take before after the main scheme benefits come into payment. 7) If benefits are taken before main scheme benefits this has to be by income drawdown. 8) If scheme has not adopted flexibility rules, FSAVC benefits must be taken at the same time as main scheme benefits. 9) The only exception is where the member has not left pensionable service and has not resumed payment of FSAVCs. In This case FSAVCs cab is taken at a different time from the main scheme benefits between age 50 and 75. 10) Taking into account the scheme benefits a maximum lump sum of up to 4 times salary at date of death less any retained benefits, plus a retune of member contributions. Generally such benefits are not included in the deceased’s estate. 11) If an annuity had been bought at retirement, provision may have been made for a spouse’s annuity. If there are no survivors, the annuity ceases. 12) Employee bears all charges involved in setting up and maintaining the plan. 2 5. About AVC: 1)Open to all active members of a UK occupational pension scheme or statutory pension scheme. 2) Up to 15%of salary, subject to the earnings cap for post 89 members, less any contributions made to the employer’s main scheme as a condition of membership and any FSAVCs. 3) Regular premiums are paid gross and receive full tax relief through the net pay arrangement. Single premiums may also be paid under the net pay arrangement. Tax relief is not available on any transfer payments paid into the plan. 4) The fund grows free from tax on income and capital gains. 5) Usually selected by the Trustees, but employee may be free to choose from a selection of funds. 6) Benefits can be taken between ages 60 and 75. early retirement from age 50 is available subject to Scheme Rules. 7) Yes, provided plan was set up prior to 8 April 1987. Post 89 members can have the value of their AVC plan included in the calculation of tax-free cash under the 2.25*initial pension calculation. 8) Fund, less any tax-free cash where applicable i.e. AVC paid prior to 8 April 1987, is used to provide an annuity. Income withdrawals, where permitted, can be taken. An annuity must be purchased by age 75. 9) Taking into account the main scheme benefits a maximum lump sum of up to 4 times salary at date of death less any retained benefits, plus a return of member contributions 10)If an annuity had been bought at retirement provision may have been made for a spouse’s annuity. If there are no survivors, the annuity ceases. 11)Employer usually meets the set-up and administration costs. 6. In the case, about Iona is thinking of starting a personal pension scheme: 1)To provide a straightforward, low cost way for you to save for your retirement using tax concessions. 2) To build up a find that will be able to convert into a regular income when retire. 3) To give investor the option of taking some of their fund as a tax-free cash lump sum at retirement. 5) To reduce the investment risk as approaching retirement by following a ‘lifestyle’ investment strategy. 7) They should review the amount contribute regularly. 8) The plan charges may be higher than expected. 9) The favorable tax treatment and contribution limits of Personal Pensions may change in the future. 3 7.Carry Back of Unused Relief : 1) Contribution limits are as per the previous tax year. 2) Contributions cannot be carried back more than one year. 3) The election to carry back must be made before or at the time the contributions is paid. 4) It is not possible to carry back an employer’s contribution. 5) The election must be made by 31st January in the current tax year. I.e. an election to carry back is not possible from 1st Feb to 5th April. Carry Forward of Unused Relief : 1) Although the carry forward facility had been available since 1980, it was abolished on 6 April 2001. 2) Although no longer available for personal pensions, it is still possible to carry forward for contributions to retirement annuity policies. 3) From 6 April 2001, all contributions paid by individuals are paid net of basic rate tax. 4) Where the individual has already completed a tax return and sent it to the Inspector of Taxes before making the carry back election, form PP43 should be sent directly to the Inspector, with a copy sent to the product provider. 4