CPC Learner Materials
Everything for the Certificate in Pensions Calculations Exams

CPC Examination

Qualification

The CPC comprises seven separate units which must all be completed to achieve the qualification. Details can be found here - Certificate in Pensions Calculations

Specification

The specification for the qualification can be found here - CPC Specification

How the Units are Assessed

Units are assessed by way of examinations designed to demonstrate learners’ competence in the manual calculation and communication of benefits of occupational pension schemes. Assessment is by ‘open book’ case study examinations, which are offered each year in March and September.

Examinations

The case studies for the examinations are based on three fictitious pension schemes.  

Two of these are final salary schemes – one of which is a CARE scheme – and the other is a money purchase scheme. 

The CARE scheme and the money purchase scheme are not contracted out whereas the other final salary scheme was contracted out for category A members until 5 April 2016.

Learners have to be able to carry out manual calculations for all three schemes. Learners also have to write at least one letter to communicate the benefits payable and request any further information required before the scheme can pay the benefits.

Retirements Part 1

Calculate and Quote Pension Scheme Retirement Benefits for Members without Special Circumstances

Retirements Part 2

Calculate and Quote Pension Scheme Retirement Benefits for Members with Special Circumstances

Deaths Part 1

Calculate and Quote Pension Scheme Death Benefits for Members without Special Circumstances

Deaths Part 2

Calculate and Quote Pension Scheme Death Benefits for Members with Special Circumstances

Leavers Part 1

Calculate and Quote Pension Scheme Leaver Benefits for Members without Special Circumstances

Leavers Part 2

Calculate and Quote Pension Scheme Leaver Benefits for Members with Special Circumstances

Transfers In & Transfers Out

Calculate and Quote Pension Scheme Transfer In & Transfer Out Benefits


Useful Resource Material

Below are links to information which will be helpful in your studies. You will also need to see the individual pages for each topic area to give you the breadth of knowledge necessary to complete the unit(s) you are taking.


Weblinks


General and Regulatory Documentation


Current Scheme Booklets and Tables of Factors

XYZ Pension and Life Assurance Scheme Booklet (reviewed April 2024)

RST Pensions Scheme Booklet (reviewed April 2024)

OPQ Retirement & Death Benefits Plan Booklet (reviewed April 2024)

Tables of Factors (reviewed April 2024)

Key Features (reviewed April 2024)





Deaths Overview

Welcome to the 2024-2025 Version of the online learning programme Determine Pension Scheme Death Benefits, one of the units that make up the Pensions Management Institute's Vocational Qualification examinations.

The Case Studies and Worked Answers are labelled 2024-2025. These have been updated to reflect current practice and are based on the revised Scheme Booklets and Tables of Factors. In addition to familiarising themselves with the Scheme Booklets and Tables of Factors, learners are strongly advised to read the Key Features document which has been released at the same time. This document details all key changes for 2024-2025 and provides guidance on what additional information will be expected to be provided in the Case Studies and Letters.

Please be mindful that, although covering numerous scenarios, the case studies cannot cover each and every permutation on which learners may be tested in the examinations. 

Latest News

For the latest information or guidance on the CPC Examinations please click on the following link.  

This will take you through to the PMI website:

Certificate in Pensions Calculations



Salary Related Schemes 

In a salary related scheme, often referred to as a defined benefit scheme, the scheme rules will describe how a member's benefits should be calculated on leaving service, retirement or death. This element of the resource material will concentrate on the calculation and communication of death benefits for a salary related scheme.

The case studies that you will study in the examinations will include two salary related schemes, one of which is a CARE (Career Average Revalued Earnings) scheme:

  • The RST Pension Scheme (which is not contracted out)
  • The XYZ Pension and Life Assurance Scheme (which was contracted out for Category A members until 5 April 2016 but was never contracted out for Category B members)

There are three distinct death calculations and learners will be tested on each of these in the examinations:

Death in service benefits (for members who are "active" and who die either before or on / after normal pension date)

Death in deferment benefits (for members who have left the scheme and are "preserved" and who die before retirement)

Death in retirement benefits (for members who are "retired" and who die whilst in receipt of a pension)

Fact Finding

1. What happens on death in service?

Death in service benefits are paid in respect of active members of a scheme at the date of death; whether the members die before or on / after normal pension date.

Lump sum death benefits on death in service

On death in service before normal pension date, lump sum death benefits typically comprise a life assurance benefit and a refund of contributions (including AVCs).

If death in service is on / after normal pension date but before age 75, the lump sum death benefit (if applicable in the scheme rules) is typically calculated as 5 years of pension payments (capped to age 75) based on the pension the member would have received had retirement occurred on the date of death.

Life assurance benefits are generally insured. This means that the scheme must pay a premium to an insurance company who will then be responsible for paying out life assurance benefits when they fall due. Alternatively, life assurance benefits may be funded and paid directly from the scheme. In either case, the value of the life assurance benefit is the same.

Refunds and lumps sum death benefits which are based on the pension payments that would have been paid over a specified period are generally paid directly from the scheme.

Pensions on death in service before normal pension date

On death in service before normal pension date, schemes usually provide a pension for the surviving spouse / civil partner. This pension may be based on a percentage of accrued pension up to the member's date of death but, more often, the pension is a percentage of the prospective pension that the member would have received at normal pension date.

TIP: For the XYZ Pension and Life Assurance Scheme, the total member's pension cannot be less than the GMP accrued between 6 April 1978 and 5 April 1997 and any accrued pension before 6 April 1978 and after 5 April 1997.

There may also be provision in the scheme rules to provide pensions to:

  • Any of the member's children provided they are under a specific age (higher for those children who are in full-time education)
  • Any other person who is financially dependent upon the member at the date of death

These additional provisions apply equally to death in service on / after normal pension date, death in deferment (provided a pension is payable, which is NOT the case for the RST Pension Scheme) and death in retirement.

Where a member`s spouse / civil partner is considerably younger than the member (typically more than 10 years younger) some schemes apply a reduction to the spouse`s / civil partner`s pension to reflect the probability that the pension will be payable for a longer period of time. This is the case for the RST Pension Scheme.

Pensions on death in service on / after normal pension date

It is usual practice in the event of death in service on / after normal pension date to treat the member as having retired on the actual date of death. As such, where a lump sum death benefit is payable, it is typically calculated as 5 years of pension payments (capped to age 75) based on the pension that the member would have received had retirement occurred on the date of death. Similarly, where a spouse`s / civil partner`s pension is payable, it is typically based on a percentage of the pension that the member would have received had retirement occurred on the date of death.

2. What happens on death in deferment?

Death in deferment benefits are paid in respect of preserved members (or opted-out members) of a scheme at the date of death.

Lump sum death benefits on death in deferment

Cover for life assurance generally ceases when a member leaves pensionable service. If a member is opted-out (leaves the scheme but not the company), then life cover may continue but sometimes at a lower rate.

There is no life cover for preserved members of the RST Pension Scheme or XYZ Pension and Life Assurance Scheme. The lump sum death benefit for these schemes is simply a refund of scheme contributions (without interest) and a refund of the AVCs paid for the RST Pension Scheme and a refund of the value of the AVC's for the XYZ Pension and Life Assurance Scheme.

Pensions on death in deferment

The scheme rules will determine whether or not a spouse's / civil partner's pension or a child dependant's pension is payable on death in deferment.

  • In the RST Pension Scheme there are NO pensions payable if a preserved member dies before retirement.
  • In the XYZ Pension and Life Assurance Scheme a spouse's / civil partner's pension of 50% of the member's preserved pension at date of leaving is payable but revalued between the member's date of leaving and the date of death.

Further details are included in the relevant scheme booklets.

3. What happens on death in retirement?

Death in retirement benefits are paid in respect of retired members of a scheme at the date of death.

Lump sum death benefits on death in retirement

On death in retirement, a lump sum death benefit is generally payable provided the member dies within a specified period (typically 5 years).

Should the member die within the specified period then the lump sum death benefit is usually equal to the value of the remaining payments to the end of the specified period (capped to age 75).

Should the member die outside the specified period there is usually no lump sum death benefit payable.

Pensions on death in retirement

On death in retirement it is normal for a spouse's / civil partner's pension to be payable expressed as a percentage of the deceased member's pension in payment at the date of death plus the value of any commuted pension revalued to the date of death. The percentage is typically 50% but can be up to two-thirds depending on the rules of the scheme.

In the XYZ Pension and Life Assurance Scheme the spouse's / civil partner's pension is 50% of the member's pension in payment at the date of death. In the RST Pension Scheme it is 40%. Additionally, if the member took a tax-free cash sum on retirement then the commuted pension for both schemes is revalued to the date of death prior to applying the appropriate percentage.

TIP: Depending on the rules of a scheme, the spouse's pensions may cease on remarriage. Also, the rules may prevent payment of a spouse's pension if the deceased member and spouse have been married for less than 6 months.

4. How are communications with beneficiaries / trustees made?

Once the benefits have been calculated they need to be communicated to the beneficiaries and / or trustees of the scheme in the form of a letter. The examinations will expect learners to write letters to include all the facts and figures that are required to be communicated.

For death case studies from the RST Pension Scheme and XYZ Pension and Life Assurance Scheme all letters should include the following (where applicable):

1. Member's date of death

2. Lump sum death benefit (stating the actual values for each component) payable either to persons at the Trustee's discretion or to the deceased member's legal personal representatives

3. Spouse's pension (stating the actual values for the pension splits [pre-1988 WGMP, post-1988 WGMP and excess elements for the XYZ Pension and Life Assurance Scheme; and pre-2006 and post-2006 elements for the RST Pension Scheme])

4. Pension increase rates and dates for increases (stating the actual rates for the pension splits [pre-1988 WGMP, post-1988 WGMP and excess elements for the XYZ Pension and Life Assurance Scheme; and pre-2006 and post-2006 elements for the RST Pension Scheme])

5. Value of lump sum death benefit (stating that it counts against the deceased member's remaining 'Lump Sum & Death Benefit Allowance')

6. Requirements for payment:

  1. Member’s death certificate
  2. Marriage certificate
  3. Spouse’s birth certificate
  4. Bank details

The list is not definitive and all letters must, for example, refer to any special circumstances and additional information contained in the case study.

Money Purchase Schemes

In a money purchase scheme, often referred to as a defined contribution scheme, the scheme rules will describe how a member's benefits are to be calculated on leaving service, retirement or death. This element of the resource material will concentrate on the calculation and communication of death benefits for a money purchase scheme.

The case studies that you will be referred to in the examinations will include one money purchase scheme:

  • The OPQ Retirement & Death Benefits Plan (which is not contracted out)

TIP: From 6 April 2012 it was no longer possible for money purchase schemes to be contracted out.

There are three distinct death calculations although learners will be tested only on the first two scenarios below in the examinations (since, once in payment, annuities will fall outside the scope of the OPQ Retirement & Death Benefits Plan):

  1. Death in service benefits (for members who are "active" and who die either before or on/after normal pension date)
  2. Death in deferment benefits (for members who have left the scheme and are "preserved" and who die before retirement)
  3. Death in retirement benefits (for members who are "retired" and who die whilst in receipt of a pension)


Fact Finding

1. What happens on death in service?

Death in service benefits are paid in respect of active members of a scheme at the date of death; whether the members die before or on / after normal pension date.

Lump sum death benefits on death in service

If a member dies in service before normal pension date, then a lump sum death benefit is generally payable in the form of life assurance.  In addition, the member`s overall policy account (usually comprising member contributions (including AVCs) and employer contributions, plus any investment returns on these contributions) is typically used to provide further lump sum death benefits.

Although protected rights were abolished from 6 April 2012, with any accrued protected rights not already in payment at this date being treated the same as other pension benefits, protected rights pensions already in payment at this date continue to be paid and increased on the same basis that applied at the time they were purchased.

If a member was contracted out and died in service before 6 April 2012, the protected rights element of the fund had to be used to provide for a spouse`s / civil partner`s pension rather than to provide for an additional lump sum death benefit. In the absence of a spouse / civil partner, the protected rights element of the fund generally had to be paid to persons at the Trustees` Discretion as a lump sum death benefit, normally in accordance with the member`s nomination form or, alternatively, to the deceased member`s estate.

If death in service occurs on / after normal pension date, the life assurance benefit may no longer be payable depending on the rules of the scheme. However, the member`s policy account is generally still used to provide a lump sum death benefit as described above.

With money purchase schemes, life assurance benefits are generally insured. This means that the scheme must pay a premium to an insurance company who will then be responsible for paying out life assurance benefits when they fall due.

Pensions on death in service

From 6 April 2012, it was no longer possible for defined contribution schemes to be contracted out on a protected rights basis. If a member was contracted out and died in service before this date, the protected rights element of the fund had to be used to purchase a spouse`s / civil partner`s pension. However, in the absence of a spouse / civil partner, the protected rights could have been refunded as a lump sum death benefit as described in the previous section (‘Lump sum death benefits on death in service`).

Prior to 6 April 2006, the pension purchased by pre 6 April 1997 protected rights had to escalate in payment in line with the increase in the Retail Prices Index (RPI) to a maximum of 3% per annum. The pension purchased by post 5 April 1997 protected rights had to escalate by RPI to a maximum of 5% per annum.

From 6 April 2006, the compulsion to increase pensions in respect of protected rights was removed. Although protected rights were abolished from 6 April 2012, with any accrued protected rights not already in payment at this date being treated the same as other pension benefits, protected rights pensions already in payment at this date continue to be paid and increased on the same basis that applied at the time they were purchased.

2. What happens on death in deferment?

Death in deferment benefits are paid in respect of preserved members (or opted-out members) of a scheme at the date of death.

Lump sum death benefits on death in deferment

Cover for life assurance ceases when a member leaves pensionable service. If a member is opted out (i.e. the member leaves the scheme but not the company) then life cover may continue but sometimes at a lower rate.

There is no life assurance benefit for preserved members of the OPQ Retirement & Death Benefits Plan. As such, the lump sum death benefit for death in deferment is simply a refund of the value of the member`s overall fund, including any investment returns between the date of leaving and the date of death.

Please refer to the previous section (‘Lump sum death benefits on death in service`) to see under what circumstances protected rights can be refunded (provided death in deferment occurred before 6 April 2012).

Pensions on death in deferment

A member`s fund will continue to be invested after the member becomes preserved. Should the member die before retirement, the accumulated fund will generally be treated in the same way as that of an active member who dies in service (see previous section on ‘Pensions on death in service`).

3. What happens on death in retirement?

Death in retirement benefits are paid in respect of retired members of a scheme at the date of death.

Lump sum death benefits on death in retirement

On death in retirement, a lump sum death benefit will typically be paid provided the member dies within a specified period (usually if death occurs within 5 years from the date of the first pension payment, although the period can be longer). However, there will be no lump sum death benefit at all should this option not be made available to the member at the time the benefits are taken - or if this option is made available to the member at the time the benefits are taken but is not chosen by the member.

Should the member die outside the specified period, there is usually no lump sum death benefit payable.

Pensions on death in retirement

The payment of a death in retirement spouse's / civil partner's pension will be dependent upon whether the pension purchased by the member at retirement provided for this contingency.

If a contracted-out member was married and retired prior to 6 April 2012, there had to be a provision for a 50% spouse`s / civil partner`s pension for the protected rights (this requirement ceased for members retiring from 6 April 2012 when it was no longer possible to contract out on a protected rights basis). Where a protected rights pension exists, then on the member`s death the spouse`s / civil partner`s protected rights pension will come into payment and will increase each year in the same way as the member`s protected rights pension.

Members will normally decide when taking their benefits whether they want to use the value of their policy account to purchase a single life pension or a pension with an attaching spouse`s / civil partner`s pension to be paid in the event of their death. The member will typically opt for a 50% or a two-thirds spouse`s / civil partner`s pension, with the rate of escalation being at the same rate as that of the member.

Since 6 April 2015 and the introduction of the Pension Freedoms, there are additional options available to members of money purchase schemes other than the requirement to purchase a pension.

Please note that, for the OPQ Retirement & Death Benefits Plan, the pension is paid by an external provider rather than from the scheme. As such, learners will not be tested on death in retirements in the examinations.

4. How are communications with beneficiaries / trustees made?

Once the benefits have been calculated they need to be communicated to the beneficiaries and / or trustees of the scheme in the form of a letter. The examinations will expect learners to write letters to include all the facts and figures that are required to be communicated.

For death case studies from the OPQ Retirement & Death Benefits Plan all letters should include the following (where applicable):

  1. Member's date of death
  2. Lump sum death benefit (stating the actual values for each component) payable to either persons at the Trustee's discretion or to the deceased member's legal personal representatives
  3. Value of lump sum death benefit (stating that it counts against the deceased member’s remaining 'Lump Sum & Death Benefit Allowance')
  4. Requirements for payment:

a) Member’s death certificate

b) Marriage certificate (if applicable)

c) Spouse's birth certificate (if applicable)

d) Bank details (if applicable)

The list is not definitive and all letters must, for example, refer to any special circumstances and additional information contained in the case study.

Special Circumstances

Fact Finding

For the purposes of the CPC examinations, learners will need to take into account a variety of special circumstances and show how they affect the benefits payable:

  • Split rates of accrual
  • Part-time service
  • Transferred-in benefits
  • Additional voluntary contributions
  • Augmentations
  • Retained benefits

Although retained benefits (i.e. additional pension rights held outside of the scheme) are not specifically tested in the CPC examinations, they may have an impact on a member's available 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

Details of special circumstances should always be included when an associated letter is required to be written.

1. How are split rates of accrual handled?

Typically, changes in accrual rate will occur in a salary related scheme whereby members have either changed their category of membership to one that accrues pension at a different rate or because the scheme rules have been amended to provide a higher / lower accrual rate.

If a member dies in active service, pensionable service will need to be determined for each change in accrual rate to enable the overall pension to be calculated. For death in service before normal pension date, prospective service will be calculated using the prevailing accrual rate at the date of death.

Depending on the special circumstances quoted, a different accrual rate might provide for a different percentage to be applied in determining the spouse's / civil partner's pension for the period for which the changed accrual rate applies.

2. How is part-time service handled?

Where a member has worked (or is working) on a part-time basis, pensionable service for a salary related scheme will need to be adjusted to reflect the reduced hours that the member has worked (or is working).  For a money purchase scheme, working reduced hours will mean contributions are based on a lower salary (i.e. actual salary rather than the full-time equivalent salary).

For salary related schemes, if a member dies in active service, pensionable service will need to be determined for each change in part-time service to enable the overall pension to be calculated. For death in service before normal pension date, prospective service will be calculated using the prevailing part-time basis at the date of death.

For both salary related schemes and money purchase schemes, the salary to be used in determining any life assurance benefit payable should be based on the actual salary being paid at the date of death rather than the full-time equivalent salary.

3. How are transferred-in benefits handled?

Benefits transferred in to a salary-related scheme may take the form of either a fixed additional pension (often revalued to normal pension date) or a number of added years/months (or days) of pensionable service. For a money purchase scheme, the transfer in will normally be in the form of a single payment to be added to the member`s individual policy account.

In the event of the death of a member, any transferred-in benefits will be subject to the rules of the receiving scheme.

4. How are AVCs handled?

Schemes are obliged to keep Additional Voluntary Contributions (AVCs) separate from the main fund. For salary-related schemes and money purchase schemes, the actual value of the AVCs are generally used to provide additional benefits. However, for some salary-related schemes it is possible to pay AVCs to provide added years of service.

From 6 April 2006 it has not been compulsory for occupational pension schemes to offer the facility for members to pay AVCs.

5. How are augmentations handled?

An augmentation is an enhancement to a member`s benefits over and above what would normally be provided under the scheme rules.

If an augmentation has been granted prior to a member`s death, it is important that the augmentation has been properly authorised and documented by the trustees.

6. How are retained benefits handled?

Retained benefits are pension rights derived from a member's participation in other registered pension schemes.

Retained benefits must be considered when checking against a member's available 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

Number Crunching and Taking Action - 2024/25 Case Studies


For Number Crunching:

Take a look at an individual Case Study from the Number Crunching column.

Calculate the DEATH benefits payable (using the appropriate Scheme Booklet and Tables of Factors).

Check your answers against the answers provided in the Answer column.

For Taking Action:

For the chosen Case Study, write a letter to the trustees / beneficiaries to communicate the DEATH benefits payable and the action to be taken.

Compare the contents of your letter with the information required to be communicated from the Taking Action column.

PLEASE WRITE FULL ANSWERS AND NOT BULLET POINTS


XYZ Pension and Life Assurance Scheme (Cat A)

Case StudyExamNumber CrunchingAnswerTaking Action





Andrew RichardsDeaths 1Case Study
Answer
Letter
Cecilia LloydDeaths 1Case Study
Answer
Letter
Alvin Kanhai
Deaths 2Case Study
Answer
Letter
Gemma GreenidgeDeaths 2Case Study
Answer
Letter
Leroy FredericksDeaths 2Case Study
Answer
Letter


XYZ Pension and Life Assurance Scheme (CAT B)

Case StudyExamNumber CrunchingAnswerTaking Action





Albert MarshallDeaths 1Case Study
Answer
Letter
Suzanna HoldingDeaths 1Case Study
Answer
Letter
Henry AmbroseDeaths 2Case Study
Answer
Letter
Joanne GarnerDeaths 2Case Study
Answer
Letter
Wesley RobertsDeaths 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Nicole CoeDeaths 1Case Study
Answer
Letter
Sebastian BedfordDeaths 1Case Study
Answer
Letter
Emma FosterDeaths 2Case Study
Answer
Letter
Jonathan CramDeaths 2Case Study
Answer
Letter
Oliver OvettDeaths 2Case Study
Answer
Letter


OPQ Retirement & Death Benefits 

Case StudyExamNumber CrunchingAnswerTaking Action





Alison MinterDeaths 1Case Study
Answer
Letter
Eliza Boza-EdwardsDeaths 1Case Study
Answer
Letter
Jason HoneyghanDeaths 2Case Study
Answer
Letter
Penelope ContehDeaths 2Case Study
Answer
Letter
Seamus McGuiganDeaths 2Case Study
Answer
Letter




Retirements Overview

Welcome to the 2024-2025 Version of the online learning programme Determine Pension Scheme Retirement Benefits, one of the units that make up the Pensions Management Institute's Vocational Qualification examinations.

The Case Studies and Worked Answers are labelled 2024-2025. These have been updated to reflect current practice and are based on the revised Scheme Booklets and Tables of Factors. In addition to familiarising themselves with the Scheme Booklets and Tables of Factors, learners are strongly advised to read the Key Features document which has been released at the same time. This document details all key changes for 2024-2025 and provides guidance on what additional information will be expected to be provided in the Case Studies and Letters.

Please be mindful that, although covering numerous scenarios, the case studies cannot cover each and every permutation on which learners may be tested in the examinations. 

 

Latest News

For the latest information or guidance on the CPC Examinations please click on the following link.  

This will take you through to the PMI website:

Certificate in Pensions Calculations

Salary Related Schemes

In a salary related scheme, often referred to as a defined benefit scheme, the scheme rules will describe how a member's benefits should be calculated on leaving service, retirement or death. This element of the resource material will concentrate on the calculation and communication of retirement benefits for a salary related scheme.

The case studies that you will study in the examinations will include two salary related schemes, one of which is a CARE (Career Average Revalued Earnings) scheme:

  • The RST Pension Scheme (which is not contracted out)
  • The XYZ Pension and Life Assurance Scheme (which was contracted out for Category A members until 5 April 2016 but was never contracted out for Category B members)

There are four distinct retirement calculations and learners will be tested on each of these in the examinations:

  1. Normal retirement (for members who are "active" or “preserved” and who retire at normal pension date)
  2. Early retirement (for members who are “active” or "preserved" and who retire before normal pension date)
  3. Ill-health retirement (for members who are “active” or “preserved” and retire before normal pension date due to ill-health)
  4. Late retirement (for members who are "active" or “preserved” and who retire after normal pension date)


Fact Finding

1. How are normal retirement benefits calculated?

A normal retirement pension for a salary related scheme is typically based on the rate of pension accrual, the member`s period of pensionable service and the member`s final pensionable salary at normal pension date.

Under the XYZ Pension and Life Assurance Scheme for a Category A member, a normal retirement pension is based on a default pension accrual rate of 70ths (although members can vary their contribution rate in exchange for an accrual rate of 60ths or 80ths), the member`s period of pensionable service (measured in years and days) and the member`s final pensionable salary (best pensionable salary in the last 5 years) at normal pension date.

Under the XYZ Pension and Life Assurance Scheme for a Category B member, a normal retirement pension  is based on a pension accrual rate of 60ths, the member`s period of pensionable service up to 3 July 2011 (measured in years and days) and the member`s final pensionable salary (either best pensionable salary in the last 5 years or, if greater, final pensionable salary at 3 July 2011 increased by 5% per annum compound or the increase in the RPI, if lower).

Under the RST Pension Scheme a normal retirement pension is based on a member’s CARE pension calculated up to 5 April prior to normal pension date plus a proportionate amount from 6 April up to normal pension date. A year-to-date pro-rata CPI factor is additionally applied to the member`s CARE pension accrued to the previous 5 April.

The CARE pension is then compared to an Underpin pension based on 1/90 x pensionable service (measured in years and complete months) x contractual salary. If this results in a higher figure, then the Underpin pension rather that the CARE pension is payable.

Benefits under the RST Pension Scheme must be split pre 6 April 2006 and post 5 April 2006 due to the different rates at which these elements of pension increase in payment.

2. How are early retirement benefits calculated?

An early retirement pension is generally calculated in the same way as a normal retirement pension except an actuarial reduction is typically applied to the accrued pension.

An early retirement pensions is generally reduced by an actuarial factor to reflect the fact that the pension is coming into payment earlier than expected and, consequently, is likely to be payable for a longer period than expected. The factor will typically be a fixed percentage for each complete year that the member retires early (pro-rated for each complete month early). This is the case for the XYZ Pension and Life Assurance Scheme and the RST Pension Scheme.

It is not uncommon for schemes with a normal pension age of 65 to offer retirement from age 60 with no actuarial adjustment. This is particularly likely when equalisation considerations apply.

TIP: With effect from 6 April 2010, the earliest that a member can generally retire from an occupational pension scheme is age 55. This is set to rise to age 57 in 2028 in line with rises to the State Pension Age.

As with normal retirement, members can commute part of their pension for a tax-free cash sum and take a reduced pension 

TIP: Under the RST Pension Scheme, the post 5 April 2006 pension should be commuted first with the balance, if any, being commuted from the pre 6 April 2006 pension.

If a scheme was contracted out prior to 6 April 2016, similar checks to those required for normal retirement apply on early retirement. The pension accrued for the period 6 April 1978 to 5 April 1997 must be at least equal to the GMP. In addition, if the member takes the tax-free cash sum option, the scheme should ensure that the residual pension (when revalued to ‘GMP due date`) covers the GMP at ‘GMP due date`. If it does not, the scheme must, as a minimum, uplift the residual pension to the GMP once the member reaches GMP due date`.

Should early retirement occur after ‘GMP due date` then the residual pension, after taking the tax-free cash sum option, must cover the GMP.

TIP: GMP due date is the date at which the GMP becomes payable and is age 65 for males and age 60 for females. It is not, as is often believed, the same as State Pension Age.

3. How are ill-health retirement benefits calculated?

An ill-health retirement pension can be based on actual pensionable service and final pensionable salary at the date of retirement (with or without an actuarial reduction being applied) or, if the scheme rules permit, it can be based on prospective pensionable service to normal pension date and final pensionable salary at the date of retirement.

In the event of ill-health retirement, it is possible for members to receive their pension prior to age 55. In cases of serious ill-health the scheme rules may additionally permit the pension to be fully commuted.

Where ill-health benefits are not fully commuted and the pension is based on pensionable service to normal pension date, careful consideration needs to be given to Annual Allowance limits.

  • Tax-free cash sum option - Please refer to earlier sections where this is discussed.
  • Contracting out - Please refer to earlier sections where this is discussed.

4. How are late retirement benefits calculated?

A late retirement pension is generally calculated using the pension accrued at normal pension date with an actuarial increase being applied (as in the XYZ Pension and Life Assurance Scheme) or by accruing extra pensionable service until late retirement date with no actuarial increase being applied (as in the RST Pension Scheme).

A late retirement pension is generally increased by an actuarial factor to reflect the fact that the pension is coming into payment later than expected and, consequently, is likely to be payable for a shorter period than expected. The factor will typically be a fixed percentage for each complete year that the member retires late (pro-rated for each complete month late). This is the case for the XYZ Pension and Life Assurance Scheme.

  • Tax-free cash sum option - Please refer to earlier sections where this is discussed.
  • Contracting out - Please refer to earlier sections where this is discussed.

5. How are retirements from preserved status handled?

Preserved benefits (often called deferred benefits) belong to members who have left the pension scheme and who have chosen to leave their benefits in the scheme to be taken when they reach retirement. For the purposes of the examinations, a preserved member will always have a date of leaving and a date of retirement.

For a salary related scheme, leaving service entitlements will normally be quoted at the member's date of leaving and will then need to be indexed up to the member's actual retirement date (with actuarially adjusted factors being applied on early or late retirement to cater for a longer or shorter period of payment, respectively).

Under the XYZ Pension and Life Assurance Scheme (for Category A members), the GMP will need to be increased during the period of deferment using the fixed rate revaluation method. Schemes may also adopt the full rate revaluation method whereby the GMP is increased fully in line with the increase in average earnings (Section 148 orders).

For the fixed rate method of revaluation the percentage rate to be applied depends on the date the member left the scheme (see table below). The number of years of revaluation at this percentage rate will be based on the number of complete tax years between the date of leaving and `GMP due date` (or earlier date of retirement). Further statutory increases will apply in the event of retirement occurring after `GMP due date` (age 65 for male members and age 60 for female members).

6th April 2022 onwards

3.25%

6 April 2017 to 5 April 2022

3.5%

6 April 2012 to 5 April 2017

4.75%

6 April 2007 to 5 April 2012

4.0%

6 April 2002 to 5 April 2007

4.5%

6 April 1997 to 5 April 2002

6.25%

6 April 1993 to 5 April 1997

7.0%

6 April 1988 to 5 April 1993

7.5%

6 April 1978 to 5 April 1988

8.5%


Under the XYZ Pension and Life Assurance Scheme, the whole of the pension in excess of the GMP at the date of leaving is increased by RPI subject to a maximum of 5% for each complete year from date of leaving to date of retirement.

Under the RST Pension Scheme, the whole of the pension is increased by CPI subject to a maximum of 5% for each complete year from date of leaving to date of retirement.

6. How are communications with the member / trustees made?

Once the benefits have been calculated they need to be communicated to the member and / or trustees of the scheme in the form of a letter. The examinations will expect learners to write letters to include all the facts and figures that are required to be communicated.

For retirement case studies from the RST Pension Scheme and XYZ Pension and Life Assurance Scheme all letters should include the following (where applicable):

1. Member’s date of retirement

2. Member’s options:

  1. Full pension (stating the actual values for the pension splits [pre-1988 GMP, post-1988 GMP and excess elements for the XYZ and Life Assurance Scheme; and pre-2006 and post-2006 elements for the RST Pension Scheme]) OR
  2. Tax-free cash sum and residual pension (stating the actual values for the pension splits [pre-1988 GMP, post-1988 GMP and excess elements for the XYZ Pension and Life Assurance Scheme; and pre-2006 and post-2006 elements for the RST Pension Scheme])

3. Pension details:

  1. Commencement date
  2. Frequency of payment
  3. Pension increase rates and increase dates (stating the actual rates for the pension splits [pre-1988 GMP, post-1988 GMP and excess elements for the XYZ Pension and Life Assurance Scheme; and pre-2006 and post-2006 elements for the RST Pension Scheme])

4. Death in retirements benefits (stating the actual values for the spouse's pension)

5. Confirmation (or otherwise) that the tax-free cash sum is within the member's remaining 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'

6. Requirements for payment:

  1. Choice of option
  2. Member’s birth certificate
  3. Bank details

The list is not definitive and all letters must, for example, refer to any special circumstances and additional information contained in the case study.



Money Purchase Schemes

In a money purchase scheme, often referred to as a defined contribution scheme, the scheme rules will describe how a member's benefits are to be calculated on leaving service, retirement or death. This element of the resource material will concentrate on the calculation and communication of retirement benefits for a money purchase scheme.

The case studies that you will be referred to in the examinations will include one money purchase scheme:

  • The OPQ Retirement & Death Benefits Plan (which is not contracted out)

TIP: From 6 April 2012 it was no longer possible for money purchase schemes to be contracted out.

There are four distinct retirement calculations and learners will be tested on each of these in the examinations:

  1. Normal retirement (for members who are "active" or “preserved” and who retire at normal pension date)
  2. Early retirement (for members who are “active” or "preserved" and who retire before normal pension date)
  3. Ill-health retirement (for members who are “active” or “preserved” and retire before normal pension date due to ill-health)
  4. Late retirement (for members who are "active" or “preserved” and who retire after normal pension date)


Fact Finding

1. What benefits are available on retirement from a money purchase scheme?

The benefits potentially available on retirement are as follows:

  1. Tax-free cash sum
  2. Member’s annuity (escalating or non-escalating)
  3. Spouse's or dependant's annuity payable on the death of the member (escalating or non-escalating)

For members taking their money purchase benefits from 6 April 2015, there are additional options available as a result of the Pension Freedoms. For instance, under the OPQ Retirement & Death Benefits Plan, it is now possible to take a single Uncrystallised Funds Pension Lump Sum (UFPLS). By taking this option, the member`s entire Personal Retirement Account is exhausted, with 25% of the UFPLS being paid tax-free and the balance being taxed at the member`s marginal rate of income tax.

TIP: The OPQ Retirement & Death Benefits Plan does not test learners on death in retirement case studies since the member’s annuity, once in payment, is the responsibility of the chosen provider and not the OPQ Retirement & Death Benefits Plan.

2. How is the tax-free cash sum calculated?

Under a money purchase scheme, the maximum tax-free cash sum is generally 25% of the value of the member's fund.

Should a member choose to not take the tax-free cash sum option or, alternatively, to take less than the maximum available, then this will leave a higher fund value with which to purchase an annuity.

From 6 April 2015, it is now also possible to take a single one-off Uncrystallised Funds Pension Lump Sum (UFPLS) or a series of UFPLS`s. 25% of each cash sum is tax-free, with the balance being taxed at the member`s marginal rate of income tax. Under the OPQ Retirement & Death Benefits Plan, only the single UFPLS option is available. However, members may choose to transfer to an alternative pension arrangement if they wish to take a series of UFPLS payments or, indeed, if they wish to exercise other options available following the introduction of the Pension Freedoms introduced in Budget 2014.

Since members retiring from 6 April 2012 no longer have any protected rights, it is now possible to take 25% of the value of the overall policy account as a tax-free cash sum, assuming the amount is within the member`s remaining 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

3. How is an annuity calculated at normal pension date?

An annuity at normal pension date is based on the member's fund value (after exercising the tax-free cash sum option), the prevailing annuity rates and the choice of annuity at normal pension date (e.g. either single life or joint life [which can be either escalating or non-escalating]).

The annuity factor will vary according to the member's age at retirement and the benefits to be provided. For example:

Details

Calculation

  • Member is retiring at age 65

Fund available: £30,000.00

  • Annuity factor for single life annuity only (no spouse)
  • Annuity increasing annually by RPI limited to 5%

£6.60 p.a. for each £100.00 of fund value

  • Annuity factor for joint life annuity (50% spouse’s annuity on death of member)
  • Annuity increasing annually by RPI limited to 3%

£5.79 p.a. for each £100.00 of fund value

  • Amount of annuity (no spouse’s annuity on death of member)

[£30,000.00 / 100] x 6.60 = £1,980.00 p.a.

  • Amount of annuity (50% spouse’s annuity on death of member)

[£30,000.00 / 100] x 5.79 = £1,737.00 p.a.


With the OPQ Retirement & Death Benefits Plan, members can make use of an `Annuity Bureau` when purchasing their annuity on retirement. For this service, an ‘Annuity Bureau` charge is applied. This charge is £75.00 or, if greater, 0.065% of the value of the member`s Personal Retirement Account after the tax-free cash sum has been taken.

TIP: Another option for securing an annuity within the OPQ Retirement & Death Benefits Plan is for the trustees to purchase an annuity with an insurance company (open market option). This option must be mentioned on the examination paper.

4. How are annuities calculated for early / ill-health / late retirement?

An annuity on early / ill-health / late retirement is calculated in exactly the same way as an annuity at normal pension date. However, although the key considerations for determining the annuity are the same (i.e. the value of the fund after exercising the tax-free cash sum option and the type of annuity required), the actual annuity factor is based on the member's age when the annuity is purchased.  The factor will be more generous for late retirement (due to the shorter expected period of payment) and less generous for early retirement (due to the longer expected period of payment).

The annuity factor will vary according to the member`s age at retirement and the benefits to be provided. The examples below cover early and late retirement:


Details

Calculation

  • Member is retiring EARLY at age 58

Fund available: £30,000.00

  • Annuity factor for single life annuity only (no spouse)
  • Annuity increasing annually by RPI limited to 5%

£5.00 p.a. for each £100.00 of fund value

  • Annuity factor for joint life annuity (50% spouse’s annuity on death of member)
  • Annuity increasing annually by RPI limited to 3%

£4.61 p.a. for each £100.00 of fund value

  • Amount of annuity (no spouse’s annuity on death of member)

[£30,000.00 / 100] x 5.00 = £1,500.00 p.a.

  • Amount of annuity (50% spouse’s annuity on death of member)

[£30,000.00 / 100] x 4.61 = £1,383.00 p.a.


Details

Calculation

  • Member is retiring LATE at age 71

Fund available: £30,000.00

  • Annuity factor for single life annuity only (no spouse)
  • Annuity increasing annually by RPI limited to 5%

£8.75 p.a. for each £100.00 of fund value

  • Annuity factor for joint life annuity (50% spouse’s annuity on death of member)
  • Annuity increasing annually by RPI limited to 3%

£7.32 p.a. for each £100.00 of fund value

  • Amount of annuity (no spouse’s annuity on death of member)

[£30,000.00 / 100] x 8.75 = £2,625.00 p.a.

  • Amount of annuity (50% spouse’s annuity on death of member)

[£30,000.00 / 100] x 7.32 = £2,196.00 p.a.


5. How are retirements from preserved status handled?

Preserved benefits (often called deferred benefits) belong to members who have left the pension scheme and who have chosen to leave their benefits in the scheme to be taken when they reach retirement. For the purposes of the examinations, a preserved member will always have a date of leaving and a date of retirement.

For money purchase schemes, the fund at the date of leaving will remain invested until such time as the member takes his benefits but no further contributions will be paid. Benefits will be determined in exactly the same way as indicated in previous sections. 

6. How are communications with the member / trustees made?

Once the benefits have been calculated they need to be communicated to the member and / or trustees of the scheme in the form of a letter. The examinations will expect learners to write letters to include all the facts and figures that are required to be communicated.

For retirement case studies from the OPQ Retirement & Death Benefits Plan, all letters should include the following (where applicable):

1. Member’s date of retirement

2. Value of member’s Personal Retirement Account

3. Full set of options:

  1. Annuity only (stating all annuity combinations based on requested escalation rates and single life / joint life options) OR
  2. Tax-free cash sum and reduced annuity (stating all annuity combinations based on requested escalation rates and single life / joint life options) 

4. Annuity details:

  1. Commencement date
  2. Frequency of payment
  3. Increase rates and increase dates

5. UFPLS option (stating the tax-free element and the taxable element)

6. Open market option

7. Confirmation (or otherwise) that the tax-free cash sum is within the member's remaining 'Lumps Sum & Death Benefit Allowance' and 'Lump Sum Allowance'

8. Requirements for payment:

  1. Choice of option
  2. Member’s birth certificate
  3. Bank details

The list is not definitive and all letters must, for example, refer to any special circumstances and additional information contained in the case study

Special Circumstances

For the purposes of the CPC examinations, learners will need to take into account a variety of special circumstances and show how they affect the benefits payable:

  • Split rates of accrual
  • Part-time service
  • Transferred-in benefits
  • Additional voluntary contributions
  • Augmentations
  • Retained benefits

Although retained benefits (i.e. additional pension rights held outside of the scheme) are not specifically tested in the CPC examinations, they may have an impact on a member's available 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

Details of special circumstances should always be included when an associated letter is required to be written.


Fact Finding

1. How are split rates of accrual handled?

Typically, changes in accrual rate will occur in a salary related scheme whereby members have either changed their category of membership to one that accrues pension at a different rate or because the scheme rules have been amended to provide a higher / lower accrual rate.

If a member retires from active status, pensionable service will need to be determined for each change in accrual rate to enable the overall pension to be calculated. For ill-health calculations, any prospective service will be calculated using the prevailing accrual rate at the date of ill-health. Depending on the special circumstances quoted, a different accrual rate might provide for a different percentage to be applied in determining the spouse`s / civil partner`s pension for the period for which the changed accrual rate applies.

2. How is part-time service handled?

Where a member has worked (or is working) on a part-time basis, pensionable service for a salary related scheme will need to be adjusted to reflect the reduced hours that the member has worked (or is working).  For a money purchase scheme, working reduced hours will mean contributions are based on a lower salary (i.e. actual salary rather than the full-time equivalent salary).

For salary related schemes, if a member retires from active service, pensionable service will need to be determined for each change in part-time service to enable the overall pension to be calculated. For retirement before normal pension date, prospective service will be calculated using the prevailing part-time basis at the date of retirement.

3. How are transferred-in benefits handled?

Benefits transferred in to a salary related scheme may take the form of either a fixed additional pension (often revalued to normal pension date) or a number of added years/months (or days) of pensionable service. For a money purchase scheme, the transfer in will normally be in the form of a single payment to be added to the member`s individual policy account.

In the event of a member retiring, any transferred-in benefits will be subject to the rules of the receiving scheme.

4. How are AVCs handled?

Schemes are obliged to keep Additional Voluntary Contributions (AVCs) separate from the main fund. For salary related schemes and money purchase schemes, the actual value of the AVCs are generally used to provide additional benefits. However, for some salary related schemes it is possible to pay AVCs to provide added years of service.

From 6 April 2006 it has not been compulsory for occupational pension schemes to offer the facility for members to pay AVCs.

5. How are augmentations handled?

An augmentation is an enhancement to a member`s benefits over and above those that would normally be provided under the scheme rules.

If an augmentation has been granted prior to a member`s retirement, it is important that the augmentation has been properly authorised and documented by the trustees.

6. How are retained benefits handled?

Retained benefits are pension rights derived from a member's participation in other registered pension schemes.

Retained benefits must be considered when checking against a member's available 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

Number Crunching and Taking Action - 2024/25 Case Studies


For Number Crunching:

Take a look at an individual Case Study from the Number Crunching column.

Calculate the RETIREMENT benefits payable (using the appropriate Scheme Booklet and Tables of Factors).

Check your answers against the answers provided in the Answer column.

For Taking Action:

For the chosen Case Study, write a letter to the trustees / member to communicate the RETIREMENT benefits payable and the action to be taken.

Compare the contents of your letter with the information required to be communicated from the Taking Action column.

PLEASE WRITE FULL ANSWERS AND NOT BULLET POINTS


XYZ Pension and Life Assurance Scheme (CAT A)

Case Study
Exam
Number CrunchingAnswerTaking Action





Alison BanksRetirements 1Case Study
Answer
Letter
Spencer MooreRetirements 1Case Study
Answer
Letter
Annabel CohenRetirements 2Case Study
Answer
Letter
Patricia WilsonRetirements 2Case Study
Answer
Letter
William CharltonRetirements 2Case Study
Answer
Letter


XYZ Pensions and Life Assurance Scheme (CAT B)

Case Study
Exam
Number CrunchingAnswerTaking Action





Joseph BallRetirements 1Case Study
Answer
Letter
Lorna HurstRetirements 1Case Study
Answer
Letter
Beverley StilesRetirements 2Case Study
Answer
Letter
Petula PetersRetirements 2Case Study
Answer
Letter
Robin HuntRetirements 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Anna ThomsonRetirements 1Case Study
Answer
Letter
Martin LilleeRetirements 1Case Study
Answer
Letter
Abigail MarshRetirements 2Case Study
Answer
Letter
Jeremy ChappellRetirements 2Case Study
Answer
Letter
Lucy WaltersRetirements 2Case Study
Answer
Letter


OPQ Retirement & Death Benefits Plan

Case Study
Exam
Number CrunchingAnswerTaking Action





Amy FrazierRetirements 1Case Study
Answer
Letter
Sabrina AliRetirements 1Case Study
Answer
Letter
Eric ForemanRetirements 2Case Study
Answer
Letter
Michelle ListonRetirements 2Case Study
Answer
Letter
Ricardo HolmesRetirements 2Case Study
Answer
Letter






Leavers Overview

Welcome to the 2024-2025 Version of the online learning programme Determine Pension Scheme Leavers Benefits, one of the units that make up the Pensions Management Institute's Vocational Qualification examinations.

The Case Studies and Worked Answers are labelled 2024-2025. These have been updated to reflect current practice and are based on the revised Scheme Booklets and Tables of Factors. In addition to familiarising themselves with the Scheme Booklets and Tables of Factors, learners are strongly advised to read the Key Features document which has been released at the same time. This document details all key changes for 2024-2025 and provides guidance on what additional information will be expected to be provided in the Case Studies and Letters.

Please be mindful that, although covering numerous scenarios, the case studies cannot cover each and every permutation on which learners may be tested in the examinations. 

Latest News

For the latest information or guidance on the CPC Examinations please click on the following link.  This will take you through to the PMI website:

 Certificate in Pensions Calculations

Salary Related Schemes 

In a salary related scheme, often referred to as a defined benefit scheme, the scheme rules will describe how a member's benefits should be calculated on leaving service, retirement or death. This element of the resource material will concentrate on the calculation and communication of leaver benefits for a salary related scheme.

The case studies that you will study in the examinations will include two salary related schemes, one of which is a CARE (Career Average Revalued Earnings) scheme:

  • The RST Pension Scheme (which is not contracted out)
  • The XYZ Pension and Life Assurance Scheme (which was contracted out for Category A members until 5 April 2016 but was never contracted out for Category B members)

There are three distinct leaver calculations and learners will be tested on each of these in the examinations:

  1. Refund of contributions (for members who are "active" when they leave the scheme)
  2. Preserved pension (for members who are “active” when they leave the scheme)
  3. Transfer out (for members who are “active” when they leave the scheme)

It should be noted that, for the Transfer out option, it will only be necessary for learners to ‘state’ the option (assuming the option exists on leaving the scheme).


Fact Finding

1. How and when can contributions be refunded?

If a member has completed less than two years of qualifying service in a salary related scheme, then a refund of contributions will be offered.

When a refund of contributions is paid, the amount payable depends solely on the contributions paid by the member. These contributions may include interest, depending on the rules of the scheme.

Historically, if a scheme was contracted out prior to 6 April 2016 (and the refund related to any period of service before 6 April 2016), an amount was deducted from the gross refund equal to the National Insurance (NI) saving that the member had made through being contracted out of the State Second Pension (S2P) for the period before 6 April 2016.

This amount was called the Certified Amount (CA). The CA was repaid to the State along with the saving that the employer additionally made through the member being contracted out. The combined saving repaid to the State in respect of the member and the employer was known as the Contribution Equivalent Premium (CEP).

The remaining contributions are refunded after the deduction of tax at the rate of 20% on the amount up to £20,000 and 50% on any amount above £20,000.

Additional Voluntary Contributions (AVCs), typically including interest and / or investment growth, are added to the gross refund prior to the deduction of tax.

TIP: Although many schemes apply interest to member contributions, the RST Pension Scheme and the XYZ Pension and Life Assurance Scheme do not. Additionally, AVCs for these schemes are refunded without taking into account investment growth.

From 6 April 2006, members who leave a scheme with three or more months but less than two years of qualifying service have had the added option of a cash equivalent transfer value as an alternative to the refund option.

Although not obliged to do so, some schemes may additionally offer the option of a preserved pension when a member leaves the scheme with less than two years of qualifying service. Sometimes, the scheme rules will stipulate a minimum period of qualifying service in the scheme for this option to apply.

For the RST Pension Scheme, members with three months or more but less than two years of qualifying service, and who have no transferred-in benefits, have the choice of:

(a) Refund of their own contributions without interest, or

(b) Preserved pension, or

(c) Cash equivalent transfer value to another pension arrangement.

It should be noted that, for the RST Pension Scheme, the preserved option is permitted regardless of the length of qualifying service if the reason for leaving is redundancy.

For the XYZ Pension and Life Assurance Scheme, members with three months or more but less than two years of qualifying service, and who have no transferred-in benefits, have the choice of:

(a) Refund of their own contributions without interest, or

(b) Cash equivalent transfer value to another pension arrangement.

It should be noted that, for the XYZ Pension and Life Assurance Scheme, the preserved option is additionally permitted provided the member leaves with one year or more of qualifying service and the reason for leaving is either due to ill-health or dismissal other than for fraud or misconduct.

2. How and when can benefits be preserved?

If a member has completed two years or more of qualifying service in a salary related scheme, then a preserved pension will be offered.

See previous section on refunds to see other circumstances in which benefits can be preserved under either the XYZ Pension and Life Assurance Scheme or the RST Pension Scheme.

Under the XYZ Pension and Life Assurance Scheme for Category A members, a preserved pension is based on a default pension accrual rate of 70ths (although members can vary their contribution rate in exchange for a rate of 60ths or 80ths), the member`s period of pensionable service (measured in years and days) and the member`s final pensionable salary (best pensionable salary in the last 5 years) at the date of leaving the scheme.

Under the XYZ Pension and Life Assurance Scheme for Category B members, a preserved pension is based on a pension accrual rate of 60ths, the member`s period of pensionable service up to 3 July 2011 (measured in years and days) and the member`s final pensionable salary (either best pensionable salary in the last 5 years from the date of leaving or, if greater, final pensionable salary at 3 July 2011 increased by 5% per annum compound or by the increase the the RPI, if lower).

Under the RST Pension Scheme, a preserved pension is based on the member`s CARE pension calculated up to 5 April prior to the date of leaving plus a proportionate amount from 6 April up to the date of leaving.

The CARE pension at the date of leaving is then compared to an `underpin` pension based on 1/90 x pensionable service (measured in years and complete months) x contractual salary. If this results in a higher figure, then the `underpin` pension rather that the CARE pension applies.

Benefits under the RST Pension Scheme must be split pre 6 April 2006 and post 5 April 2006 due to the different rates at which these elements of pension increase in payment.

For both the XYZ Pension and Life Assurance Scheme and the RST Pension Scheme, the preserved pension is revalued from the date of leaving to normal pension date. In the event of the member retiring earlier than normal pension date, then the preserved pension is revalued to the date of early retirement date, with an early retirement factor then being applied.

Should retirement occur after normal pension date, then the preserved pension is revalued to late retirement date for the RST Pension Scheme. However, for the XYZ Pension and Life Assurance Scheme, the preserved pension is revalued to normal pension date, with a late retirement factor then being applied.

Under the XYZ Pension and Life Assurance Scheme, the GMP for Category A members is increased during the period of deferment using the fixed rate revaluation method. It is also possible for schemes to adopt the full rate revaluation method whereby the GMP is increased fully in line with the increase in average earnings (Section 148 orders).

For the fixed rate method of revaluation the percentage rate to be applied depends on the date the member left the scheme (see table below). The number of years of revaluation at this percentage rate will be based on the number of complete tax years between the date of leaving and GMP due date (or earlier date of retirement). Further statutory increases will apply in the event of retirement occurring after GMP due date (age 65 for males and age 60 for females).

  

6th April 2022 onwards

3.25%

6 April 2017 to 5 April 2022

3.5%

6 April 2012 to 5 April 2017

4.75%

6 April 2007 to 5 April 2012

4.0%

6 April 2002 to 5 April 2007

4.5%

6 April 1997 to 5 April 2002

6.25%

6 April 1993 to 5 April 1997

7.0%

6 April 1988 to 5 April 1993

7.5%

6 April 1978 to 5 April 1988

8.5%


For salary related schemes, there are also legislative requirements for the revaluation of a member`s preserved pension over and above the GMP. The rate of statutory revaluation to be applied to various elements of pension is dependent on when the member left pensionable service as follows:

  • Date of leaving before 1 January 1986 - No revaluation on pension over and above GMP
  • Date of leaving between 1 January 1986 and 31 December 1990 - No revaluation on pension earned before 1 January 1985 but RPI increases (to a maximum of 5% per annum) on pension earned from 1 January 1985
  • Date of leaving between 1 January 1991 and 5 April 2009 - RPI increases (to a maximum of 5% per annum) on all pension earned
  • Date of leaving after 5 April 2009 - RPI increases (to a maximum of 5% per annum) on pension earned to 5 April 2009 and RPI increases (to a maximum of 2.5% per annum) on pension earned from 6 April 2009

Scheme rules can stipulate increases to the various preserved pension elements over and above the GMP at different rates to those outlined above provided the statutory minimum requirements are met.

The Pensions Act 2011 implemented the Government`s policy to use CPI in place of RPI as the preferred index for determining revaluation in deferment. The Pensions Act confirms, however, that no CPI underpin is required where schemes continue to increase by reference to the RPI.

Under the XYZ Pension and Life Assurance Scheme, the whole of the pension in excess of the GMP at the date of leaving is increased by RPI subject to a maximum of 5% for each complete year from date of leaving to date of retirement.

Under the RST Pension Scheme, the whole of the pension is increased by CPI subject to a maximum of 5% for each complete year from date of leaving to date of retirement.

3. How are communications with the member / trustees made?

Once the benefits have been calculated they need to be communicated to the member and / or trustees of the scheme in the form of a letter. The examinations will expect learners to write letters to include all the facts and figures that are required to be communicated.

For leaver case studies from the RST Pension Scheme and XYZ Pension and Life Assurance Scheme all letters should include the following (where applicable):

1. Member's date of leaving and normal pension date

2. Preserved pension on leaving (stating the actual values for the pension splits [pre-1988 GMP, post-1988 GMP and excess elements for the XYZ Pension and Life Assurance Scheme; and pre-2006 and post-2006 elements for the RST Pension Scheme])

3. Revalued pension to normal pension date (stating the actual revaluation rates for the various pension elements and the actual values of the revalued elements, as stipulated above)

4. Tax-free cash sum option at retirement (subject to the remaining pension covering the GMP, if applicable)

5. Death before retirement:

  1. Refund of contributions (including payee)
  2. Spouse / civil partner's pension (if applicable)

6. Death after retirement:

  1. Lump sum death benefit of balance of 5 years' pension payments (including payee)
  2. Spouse / civil partner's pension

7. Post retirement increase rates and increase dates (stating the actual rates for the pension splits [pre-1988 GMP, post-1988 GMP and excess elements for the XYZ Pension and Life Assurance Scheme; and pre-2006 and post-2006 elements for the RST Pension Scheme)

8. Transfer value option

The list is not definitive and all letters must, for example, refer to any special circumstances and additional information contained in the case study.

Money Purchase Schemes

In a money purchase scheme, often referred to as a defined contribution scheme, the scheme rules will describe how a member's benefits are to be calculated on leaving service, retirement or death. This element of the resource material will concentrate on the calculation and communication of leaver benefits for a money purchase scheme.

The case studies that you will be referred to in the examinations will include one money purchase scheme:

  • The OPQ Retirement & Death Benefits Plan (which is not contracted out)

TIP: From 6 April 2012 it was no longer possible for money purchase schemes to be contracted out.

There are three distinct leaver calculations and learners will be tested on each of these in the examinations:

  1. Refund of contributions (for members who are "active" when they leave the scheme)
  2. Preserved pension (for members who are “active” when they leave the scheme)
  3. Transfer out (for members who are “active” when they leave the scheme)

It should be noted that, for the Transfer out option, it will only be necessary for learners to ‘state’ the option (assuming the option exists on leaving the scheme).

Fact Finding

1. How and when can contributions be refunded?

If a member has completed less than 30 days of qualifying service in a money purchase scheme, then a refund of contributions will be offered. For the OPQ Retirement & Death Benefits Plan, the refund option does not apply if a member has transferred-in benefits from a personal pension plan.

2. How and when can contributions be preserved?

If a member leaves with 30 days or more of qualifying service in a money purchase scheme, then the option of preserved benefits within the scheme will be offered.

Alternatively, members can opt to transfer the value of their fund to another arrangement (such as to the registered scheme of a new employer).

When a refund of contributions is applicable, the amount payable typically depends on the contributions paid by the member.

As a rule, the actual member contributions paid (excluding interest and / or investment growth) are refunded after the deduction of tax. This is at the rate of 20% on the amount up to £20,000 and 50% on any amount over and above £20,000. Any interest and/or investment growth is then generally accumulated to the refund, with the responsibility falling to the member to declare this additional amount to HMRC.

TIP: On refunds from the OPQ Retirement & Death Benefits Plan, tax is deducted from the member’s actual contributions, with any investment growth on these contributions being accumulated to the net refund without a further deduction for tax.  The member must then declare any investment growth to HM Revenue & Customs.

For members who have at least 30 days of qualifying service (or who have less than 30 days of qualifying service but have a transferred-in benefit from a previous arrangement), the refund option does not apply. In these cases, members are entitled to either a cash equivalent transfer value or preserved benefits within the scheme.

For money purchase schemes, the fund at the date of leaving will remain invested until such time as the member takes his benefits, and no further contributions will be paid. As such, the amount of the annuity that can be purchased for a member (should that option be taken) will be unknown until the member actually takes his / her benefits. The annuity will then be dependent upon how well the investments have performed and the annuity rates in force when the annuity is purchased (plus the manner in which the annuity is to be paid - e.g. single life / joint life, rate of escalation and period of guarantee).

3. How are communications with the member / trustees made?

Once the benefits have been calculated they need to be communicated to the member and / or trustees of the scheme in the form of a letter. The examinations will expect learners to write letters to include all the facts and figures that are required to be communicated.

For leaver case studies from the OPQ Retirement & Death Benefits Plan all letters should include the following (where applicable):

1. Member’s date of leaving

2. Reference to the member's normal pension date (which should be stated as being the member's SPA) or the member's actual TRD if life-styling applies

3. Fund value at date of leaving (including unit holdings and fund values, split by each contribution type within each fund)

4. Statement that the policy account will continue to be invested until the benefits are taken (which cannot be before age 55 unless the member is retiring on the grounds of ill health) 

5. Statement that annual benefit statements will be issued

6. Options when taking benefits from the OPQ Retirement & Benefits Plan:

  1. Annuity only using ‘Annuity Bureau’ factors (based on either single life or joint life option [which can be either escalating or non-escalating])
  2. Tax-free cash sum and reduced annuity using ‘Annuity Bureau’ factors (based on either single life or joint life option [which can be either  escalating or non-escalating])
  3. Single UFPLS

7. Benefits on death before retirement (i.e. refund of policy account payable to the deceased member’s legal personal representatives)

8. Transfer value option

The list is not definitive and all letters must, for example, refer to any special circumstances and additional information contained in the case study.

Special Circumstances

For the purposes of the CPC examinations, learners will need to take into account a variety of special circumstances and show how they affect the benefits payable:

  • Split rates of accrual
  • Part-time service
  • Transferred-in benefits
  • Additional voluntary contributions
  • Augmentations
  • Retained benefits

Although retained benefits (i.e. additional pension rights held outside of the scheme) are not specifically tested in the CPC examinations, they may have an impact on a member's available 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

Details of special circumstances should always be included when an associated letter is required to be written.

1. How are split rates of accrual handled?

Typically, changes in accrual rate will occur in a salary related scheme whereby members have either changed their category of membership to one that accrues pension at a different rate or because the scheme rules have been amended to provide a higher / lower accrual rate.

If a member leaves active status with entitlement to preserved benefits, pensionable service will need to be determined for each change in accrual rate to enable the overall pension to be calculated. Depending on the special circumstances quoted, a different accrual rate might provide for a different percentage to be applied in determining the spouse`s / civil partner`s pension for the period for which the changed accrual rate applies.

2. How is part-time service handled?

Where a member has worked (or is working) on a part-time basis, pensionable service for a salary related scheme will need to be adjusted to reflect the reduced hours that the member has worked (or is working).  For a money purchase scheme, working reduced hours will mean contributions are based on a lower salary (i.e. actual salary rather than the full-time equivalent salary).

For salary related schemes, if a member leaves active service, pensionable service will need to be determined for each change in part-time service to enable the overall pension to be calculated.

3. How are transferred-in benefits handled?

Benefits transferred in to a salary related scheme may take the form of either a fixed additional pension (often revalued to normal pension date) or a number of added years/months (or days) of pensionable service. For a money purchase scheme, the transfer in will normally be in the form of a single payment to be added to the member`s individual policy account.

In the event of a member leaving active service, any transferred-in benefits will be subject to the rules of the receiving scheme.

4. How are AVCs handled?

Schemes are obliged to keep Additional Voluntary Contributions (AVCs) separate from the main fund. For salary related schemes and money purchase schemes, the actual value of the AVCs are generally used to provide additional benefits. However, for some salary related schemes it is possible to pay AVCs to provide added years of service.

From 6 April 2006 it has not been compulsory for occupational pension schemes to offer the facility for members to pay AVCs.

5. How are augmentations handled?

An augmentation is an enhancement to a member`s benefits over and above those that would normally be provided under the scheme rules.

If an augmentation has been granted prior to a member leaving service, it is important that the augmentation has been properly authorised and documented by the trustees.

6. How are retained benefits handled?

Retained benefits are pension rights derived from a member's participation in other registered pension schemes.

Retained benefits must be considered when checking against a member's available 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

Retained benefits will not appear in case studies relating to Leavers.

Number Crunching and Taking Action - 2024/25 Case Studies


For Number Crunching:

Take a look at an individual Case Study from the Number Crunching column.

Calculate the LEAVER benefits payable (using the appropriate Scheme Booklet and Tables of Factors).

Check your answers against the answers provided in the Answer column.

For Taking Action:

For the chosen Case Study, write a letter to the trustees / member to communicate the LEAVER benefits payable and the action to be taken.

Compare the contents of your letter with the information required to be communicated from the Taking Action column.

PLEASE WRITE FULL ANSWERS AND NOT BULLET POINTS


XYZ Pension and Life Assurance Scheme (CAT A)

Case StudyExamNumber CrunchingAnswerTaking Action





Ophelia CarterLeavers 1Case Study
Answer
Letter
Runako MoyoLeavers 1Case Study
Answer
Letter
Emma CooperLeavers 2Case Study
Answer
Letter
Fahriye BataLeavers 2Case Study
Answer
Letter
Kenneth SmithLeavers 2Case Study
Answer
Letter


XYZ Pension and Life Assurance Scheme (CAT B)

Case StudyExamNumber CrunchingAnswerTaking Action





Ben ThomasLeavers 1
Case Study
Answer
Letter
Alicia BradburyLeavers 2
Case Study
Answer
Letter
Barnaby WilliamsLeavers 2
Case Study
Answer
Letter
Kartika PerbesiLeavers 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Danyar AlievLeavers 1
Case Study
Answer
Letter
David RichardsonLeavers 1
Case Study
Answer
Letter
Donya SadeghiLeavers 2
Case Study
Answer
Letter
Heather TibotLeavers 2
Case Study
Answer
Letter
Jocelyn YarrellLeavers 2
Case Study
Answer
Letter
Patrick SawingsLeavers 2
Case Study
Answer
Letter


OPQ Retirement & Death Benefits Plan

Case StudyExamNumber CrunchingAnswerTaking Action





Achim WagnerLeavers 1
Case Study
Answer
Letter
Edward ChallengerLeavers 1
Case Study
Answer
Letter
Esther De La NoyeLeavers 2
Case Study
Answer
Letter
Matthew ParishLeavers 2
Case Study
Answer
Letter
Olivia GoslingLeavers 2Case Study
Answer
Letter


Transfers in and Out Overview

Welcome to the 2024-2025 Version of the online learning programme Determine Pension Scheme Transfer In and Transfer Out Benefits, one of the units that make up the Pensions Management Institute's Vocational Qualification examinations.

The Case Studies and Worked Answers are labelled 2024-2025. These have been updated to reflect current practice and are based on the revised Scheme Booklets and Tables of Factors. In addition to familiarising themselves with the Scheme Booklets and Tables of Factors, learners are strongly advised to read the Key Features document which has been released at the same time. This document details all key changes for 2024-2025 and provides guidance on what additional information will be expected to be provided in the Case Studies and Letters

Please be mindful that, although covering numerous scenarios, the case studies cannot cover each and every permutation on which learners may be tested in the examinations. 

Latest News

For the latest information or guidance on the CPC Examinations please click on the following link.  This will take you through to the PMI website:

Certificate in Pensions Calculations

Salary Related Schemes 

In a salary related scheme, often referred to as a defined benefit scheme, the scheme rules will describe how a member's benefits should be calculated on leaving service, retirement or death. This element of the resource material will concentrate on the calculation and communication of transfer benefits for a salary related scheme.

The case studies that you will study in the examinations will include two salary related schemes, one of which is a CARE (Career Average Revalued Earnings) scheme:

  • The RST Pension Scheme (which is not contracted out)
  • The XYZ Pension and Life Assurance Scheme (which was contracted out for Category A members until 5 April 2016 but was never contracted out for Category B members)

There are two distinct transfer calculations and learners will be tested on each of these in the examinations:

  1. Transfers out (for members who are "preserved")
  2. Transfers in (for members who are “active”)


Fact Finding

1. How are transfers out handled?

The 1985 Social Security Act required that any member who left pensionable service on / after 1 January 1986 with rights to a preserved pension had to be offered a cash equivalent transfer value. The Pensions Act 1995 extended this right to all leavers with entitlement to a preserved pension regardless of the date of leaving pensionable service. Under current legislation, a cash equivalent transfer value is required to be offered after leaving a scheme with three months of pensionable service.

Members may transfer the value of their benefits to one of the following:

  1. A new employer’s scheme; or
  2. An insurance policy; or
  3. A personal pension scheme / stakeholder arrangement

A Cash Equivalent Transfer Value (CETV) represents the expected cost of providing the member`s benefits within the scheme. In the case of money purchase benefits, this is generally straightforward since it is the accumulated contributions made by and on behalf of the member together with investment returns. In the case of defined benefits, the CETV is a value determined on actuarial principles, which requires assumptions to be made about the future course of events affecting the scheme and the member`s benefits.

A new regime governing the payment of cash equivalent transfer values (CETVs) from occupational defined benefit schemes was introduced from 1 October 2008. It is now the responsibility of the trustees to set the transfer value basis. Previously, the calculation had to be in accordance with Guidance Note 11 of the Institute of Actuaries.

The Legislation provides for two methods for calculating CETVs:

  1. Method based on a "best estimate" of the cost of providing the member's benefits in the scheme; or
  2. Method where trustees want to pay CETVs above the minimum amount

The best estimate method involves the calculation of an 'initial cash equivalent' (ICE). This is the amount of money needed at the effective date of the calculation which, if invested by the scheme, would be just sufficient to provide the benefits.

Generally the principles underlying the calculation are:

  1. It should be calculated with regards to the member's accrued benefits; and
  2. It should include any options and discretionary benefits that the trustees decide should be included; and
  3. It should take account of the scheme's investment strategy when choosing assumptions as to the investment returns to be expected

The ICE may be adjusted, in certain circumstances, to arrive at the final CETV. One of the permitted reductions is to allow for the funding position of the scheme. However, trustees may only reduce ICEs for this reason after obtaining an assessment by the actuary (in the form of an `insufficiency report`) of the funding of the scheme using the transfer value assumptions.

When a cash equivalent quotation is issued to a deferred member of a defined benefit scheme, the trustees must inform the member that information about the transfer can be obtained from the Financial Services Authority, the Pensions Regulator or the Pensions Advisory Service. Such information may be useful in assisting the member to make an informed decision on whether to proceed with a transfer.

Both the RST Pension Scheme and the XYZ Pension and Life Assurance Scheme carry out a single transfer value calculation.

2. How are transfers out from contracted-out schemes handled?

If a member transfers out benefits from a salary related scheme, then the transfer value will typically be used to secure benefits with the occupational scheme of the new employer or with an insurance company through an insurance policy or a personal pension arrangement.

If there is a Guaranteed Minimum Pension (GMP) under the transferring scheme (i.e. it is a contracted-out salary related scheme), then care must be taken to ensure that the receiving scheme or policy is suitable for providing contracted out benefits.

If the transfer is to an approved contracted-out salary related scheme, then there is no problem with the scheme receiving the transfer (subject to the approval of the trustees).

Historically, if the transfer was to an approved contracted-out money purchase arrangement, then the scheme was able to receive the contracted-out benefits. In such cases, the value of any GMP and post 1997 benefits being transferred were treated as protected rights. However, with effect from 6 April 2012, contracting out has not been permitted for money purchase arrangements and so contracted-out benefits can no longer be transferred.

If the receiving scheme is unable (or unwilling) to accept the GMP liability, then the available options are as follows:

  1. Leave the GMP in the scheme from which the transfer is being made; or
  2. Transfer the GMP to an individual policy which is able to receive it (e.g. an individual buy-out policy)

For a transfer to an insurance policy the GMP must be guaranteed within the insurance policy.

For the purpose of the CPC examinations, it should be assumed that the transfer value to be calculated from the XYZ Pension and Life Assurance Scheme will include a GMP element. The calculation of this element is split into three parts. These are detailed in the Tables of Factors booklet.

3. What about post April 1997 benefits?

If a transfer value contains post 5 April 1997 benefits, then the value of these benefits need to be identified separately. For the RST Pension Scheme, this involves calculating the transfer value for the benefits accrued between 6 April 1997 and 5 April 2006 and then calculating the transfer value for the benefits accrued from 6 April 2006.  The calculation is in two parts due to the fact these elements of pension increase at different rates in payment.

4. How are transfers in handled?

A transfer in may arise in respect of a member's retained benefits in a previous employer's scheme or from a personal pension.

Prior to 1 October 2008, it was a requirement under Guidance Note 11 of the Institute of Actuaries that transfers in used methods and assumptions consistent with those of a transfer out. This requirement has now been removed, although when the trustees are choosing transfer-in assumptions it will usually be appropriate for them to be consistent with the transfer out basis. 

The calculation of a transfer credit should take into account the following principles:

  1. The transfer credit (from a transferring member's perspective) should be fair value for any transfer received; and
  2. The transfer credit should not be expected to prejudice the security of existing members' benefits; and
  3. The transfer credit should not be expected to require additional funding from the employer in the long term unless agreed in advance.

TIP: A transfer in is really like a transfer out in reverse!

For a scheme that is not contracted out, like the RST Pension Scheme, the calculation is in two parts:-

Firstly, the transfer value is divided by a market level adjustment factor and from this is deducted the cost of refunding the member contributions on death before retirement.

The cost of refunding the contributions on death before retirement is calculated using the formula below:

Member’s contributions multiplied by the rate for valuing those contributions (see the Tables of Factors booklet)

Please note that the calculation relating to the pre 6 April 2006 and post 5 April 2006 contributions needs to be done separately to identify the relevant splits. However, the factor to be used in the calculation for each element is the same.

Secondly, the balance of the transfer value is divided by the rate for valuing the excess pension (see the Tables of Factors booklet) to determine the additional pension secured by the transfer in and payable from normal pension date.

Once again, it should be noted that the balance of pension for the pre 6 April 2006 and post 5 April 2006 elements needs to be calculated separately, although this time using different factors. As with the transfer out calculation, the post 5 April 1997 element must be calculated and shown separately.

5. How are transfers in to contracted-out schemes handled?

Contracted-out cases tend to be more complicated.  In order to calculate the balance of the transfer value available to purchase a pension in excess of the Guaranteed Minimum Pension (GMP) for the XYZ Pension and Life Assurance Scheme, both the cost of the return of contributions on death and the cost of buying the GMP benefits need to be deducted.  

TIP: If the transfer in is not sufficient to cover the GMP liabilities, then the case should be referred to a manager.

It is important to remember that, for the XYZ Pension and Life Assurance Scheme, the transferred-in GMP payable from normal pension age (65) needs to be added to the transferred-in excess pension payable from normal pension age to derive the total transferred-in pension payable from normal pension age. In addition, it needs to be remembered that the post 5 April 1997 transferred-in benefits must be detailed separately.

6. How are communications with the member / trustees made?

Once the benefits have been calculated they need to be communicated to the member and / or trustees of the scheme in the form of a letter. The examinations will expect learners to write letters to include all the facts and figures that are required to be communicated.

For the examination, learners will be expected to produce one letter for a transfer in case and one letter for a transfer out case.

For transfer out case studies from the RST Pension Scheme and the XYZ Pension and Life Assurance Scheme all letters should include the following (where applicable):

1. Date of calculation

2. Amount of the transfer value

3. Amount of AVCs included in the transfer value (if any)

4. Amount of the transfer value relating to the post-1997 element (if any)

5. Options for the destination of the transfer value

6. If transferring to an arrangement where benefits can be accessed flexibly:

  • mention the requirement to take independent financial advice from an authorised provider regulated under the Financial Services and Markets Act 2000 (if TV exceeds £30,000)
  • mention that a written request to apply for the transfer must be made to the trustees within three months of the TV guarantee date
  • mention the requirement to confirm to the trustees within three months of receiving the TV quotation that independent financial advice has been received
  • mention the trustees will verify within six months of the TV guarantee date that independent financial advice has been received and that the adviser has the correct permissions to proceed by verifying details on the Financial Services register before carrying out the transfer
  • mention that, unless evidence exists to the contrary, the trustees will assume the TV will be to an arrangement where benefits can be accessed flexibly
  • mention the trustees must offer to book a pensions guidance appointment with Pensions Wise on behalf of the member and that the TV cannot proceed without the guidance having been provided (unless the member provides the trustees with an opt-out notification)

7. Statement that financial advice cannot be given

8. Reference to "Pension Scams"

9. Statement that if the transfer out proceeds, no benefits will remain in the existing scheme

For transfer in case studies from the RST Pension Scheme and the XYZ Pension and Life Assurance Scheme all letters should include the following (where applicable):

1. Date of calculation

2. Amount of the transfer value received (including the post 1997 element, if applicable)

3. Details of the benefits that can be provided at normal pension date by the transfer value received (including any GMP elements, excess elements and any post 1997 elements, if applicable)

4. Statement that the benefits provided by the transfer in will be subject to the rules of the receiving scheme

5. Statement that, if the transfer in proceeds, no benefits will remain in the previous scheme

6. Expiry date for the quotation

7. Statement that financial advice may not be provided

8. Statement that the member's written authority is required if the transfer in is to proceed

These lists are not definitive and all letters must, for example, refer to any special circumstances and additional information contained in the case study.

Money Purchase Schemes 

In a money purchase scheme, often referred to as a defined contribution scheme, the scheme rules will describe how a member's benefits are to be calculated on leaving service, retirement or death. This element of the resource material will concentrate on the calculation and communication of transfer benefits for a money purchase scheme.

The case studies that you will be referred to in the examinations will include one money purchase scheme:

  • The OPQ Retirement & Death Benefits Plan (which is not contracted out)

TIP: From 6 April 2012 it was no longer possible for money purchase schemes to be contracted out.

There are two distinct transfer calculations and learners will be tested on each of these in the examinations:

  1. Transfers out (for members who are "preserved")
  2. Transfers in (for members who are “active”)


Fact Finding

1. How are transfers out handled?

If a member leaves his company with entitlement to preserved benefits from his period of membership of that company`s money purchase scheme, the member can choose to leave his preserved benefits within the scheme (where they will continue to be invested) or he can choose to transfer the value of those preserved benefits to the occupational pension scheme of his new employer or to an insurance company.

The transfer value available will be the current value of the member`s fund, comprising the value of the member's contributions (including AVCs) and the value of the employer's contributions.

2. How are transfers in handled?

When a transfer in is received by a money purchase scheme, it is important to identify the correct split between member contributions (including any AVC split) and employer contributions.

Tip: This is key because the member may wish for each element of the transfer in to be invested in separate funds (e.g. life-style for member and employer contributions but free-style for AVCs).

It should be noted that, for a transfer in from a salary related scheme that was contracted out prior to 6 April 2016, the value of any Guaranteed Minimum Pension (GMP) cannot be accepted by money purchase schemes as contracting out for these schemes was abolished from 6 April 2012 (with any Protected Rights being converted to normal scheme benefits).

3. How are communications with the member / trustees made?

Once the benefits have been calculated they need to be communicated to the member and / or trustees of the scheme in the form of a letter. The examinations will expect learners to write letters to include all the facts and figures that are required to be communicated.

For the examinations, learners will be expected to produce one letter for a transfer in case study and one letter for a transfer out case study.

For transfer out case studies from the OPQ Retirement & Death Benefits Plan all letters should include the following (where applicable):

  1. Date of calculation
  2. Amount of the transfer value
  3. Split of each fund and split of individual values within those funds (i.e. member contributions, employer contributions and AVCs)
  4. Statement that the transfer value is not guaranteed
  5. Options for the destination of the transfer value
  6. Statement that no financial advice can be given
  7. Reference to requirement for member’s written authority to proceed
  8. Reference to "Pension Scams"
  9. Statement that, if the transfer proceeds, then no benefits will remain in the existing scheme

For transfer in case studies from the OPQ Retirement & Death Benefits Plan all letters should include the following (where applicable):

  1. Date of calculation
  2. Amount of transfer in received
  3. Statement to acknowledge receipt of member’s written request to proceed with transfer in
  4. Split of the composition of the transfer in (i.e. member contributions, employer contributions and AVCs)
  5. Details of unit allocation following the transfer in (i.e. member units, employer units and AVC units, split by fund)
  6. Statement that the benefits provided are subject to the rules of the OPQ Retirement & Death Benefits Plan
  7. Statement that no benefits remain in the ceding scheme

These lists are not definitive and all letters must, for example, refer to any special circumstances and additional information contained in the case study.

Special Circumstances

For the purposes of the CPC examinations, learners will need to take into account a variety of special circumstances and show how they affect the benefits payable:

  • Split rates of accrual
  • Part-time service
  • Transferred-in benefits
  • Additional voluntary contributions
  • Augmentations
  • Retained benefits

Although retained benefits (i.e. additional pension rights held outside of the scheme) are not specifically tested in the CPC examinations, they may have an impact on a member's available 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

Details of special circumstances should always be included when an associated letter is required to be written.

1. How are split rates of accrual handled?

Typically, changes in accrual rate will occur in a salary related scheme whereby members have either changed their category of membership to one that accrues pension at a different rate or because the scheme rules have been amended to provide a higher / lower accrual rate.

Split rates of accrual will not be applicable for case studies relating to Transfers.

2. How is part-time service handled?

Where a member has worked (or is working) on a part-time basis, pensionable service for a salary related scheme will need to be adjusted to reflect the reduced hours that the member has worked (or is working).  For a money purchase scheme, working reduced hours will mean contributions are based on a lower salary (i.e. actual salary rather than the full-time equivalent salary).

Part-time service will not be applicable for case studies relating to Transfers.

3. How are transferred-in benefits handled?

Benefits transferred in to a salary related scheme may take the form of either a fixed additional pension (often revalued to normal pension date) or a number of added years/months (or days) of pensionable service. For a money purchase scheme, the transfer in will normally be in the form of a single payment to be added to the member`s individual policy account.

Transferred-in benefits will not be applicable for case studies relating to Transfers.

4. How are AVCs handled?

Schemes are obliged to keep Additional Voluntary Contributions (AVCs) separate from the main fund. For salary related schemes and money purchase schemes, the actual value of the AVCs are generally used to provide additional benefits. However, for some salary related schemes it is possible to pay AVCs to provide added years of service.

From 6 April 2006 it has not been compulsory for occupational pension schemes to offer the facility for members to pay AVCs.

5. How are augmentations handled?

An augmentation is an enhancement to a member`s benefits over and above those that would normally be provided under the scheme rules.

If an augmentation has been granted prior to a member leaving service, it is important that the augmentation has been properly authorised and documented by the trustees.

Augmentations will not be applicable for case studies relating to Transfers.

6. How are retained benefits handled?

Retained benefits are pension rights derived from a member's participation in other registered pension schemes.

Retained benefits must be considered when checking against a member's remaining 'Lump Sum & Death Benefit Allowance' and 'Lump Sum Allowance'.

Retained benefits will not appear in case studies relating to Transfers.

Number Crunching and Taking Action - 2024/25 Case Studies


For Number Crunching:

Take a look at an individual Case Study from the Number Crunching column.

Calculate the TRANSFER benefits payable (using the appropriate Scheme Booklet and Tables of Factors).

Check your answers against the answers provided in the Answer column.

For Taking Action:

For the chosen Case Study, write a letter to the trustees / member to communicate the TRANSFER benefits payable and the action to be taken.

Compare the contents of your letter with the information required to be communicated from the Taking Action column.

PLEASE WRITE FULL ANSWERS AND NOT BULLET POINTS

XYZ Pension and Life Assurance Scheme

Case Study
Exam
Number CrunchingAnswerTaking Action





Ian FisherTVINCase Study
Answer
Letter
Sarah DanceTVINCase Study
Answer
Letter
Nicola PadgettTVOUTCase Study
Answer
Letter
Paul NoakesTVOUTCase Study
Answer
Letter


RST Pension Scheme

Case Study
Exam
Number CrunchingAnswerTaking Action





Daniel SmythTVINCase Study
Answer
Letter
Leonie BauerTVINCase Study
Answer
Letter
Bryson MillerTVOUTCase Study
Answer
Letter
Isabella WilliamsTVOUTCase Study
Answer
Letter


OPQ Retirement Death Benefits Plan

Case Study
Exam
Number CrunchingAnswerTaking Action





Alison BradshawTVINCase Study
Answer
Letter
Ashton KellyTVINCase Study
Answer
Letter
Camille RochefortTVOUTCase Study
Answer
Letter
Carmen PerezTVOUTCase Study
Answer
Letter
Johannes KallioTVOUTCase Study
Answer
Letter
Vikram BahriTVOUTCase Study
Answer
Letter





Scheme Booklets

The examinations are designed to test the competence of learners in the calculation and communication of pension benefits for a range of scheme types. Depending on the examination being tested, there will be either five or six case studies (Calculation Section) and either one or two letters (Letter Section).

The examinations are based on three types of fictitious pension schemes:

Scheme

Type

Contracted-Out Status

OPQ

Money Purchase

Not Contracted Out

RST

Career Average Revalued Earnings (CARE)

Not Contracted Out

XYZ

Final Salary

Contracted Out (Category A) until 5 April 2016

Not Contracted Out (Category B)


The examinations require learners to provide evidence of their ability to:

  • Understand and interpret rules for different types of pension scheme
  • carry out manual calculations for a range of member events
  • Understand the impact of supplementary information (e.g. part-time service, enhanced accrual rates, transferred-in benefits, AVCs, etc.) on the core benefits payable
  • Understand legislative restrictions that apply to the level of benefits payable
  • Communicate benefit options fully and accurately and request all the information required before the scheme can pay the benefits

Copies of Scheme Booklets and Tables of Factors should be taken into the examinations. It is vital that learners ensure they have the current versions, which are downloadable from this page by accessing the following links:

Current Scheme Booklets

XYZ Pension and Life Assurance Scheme Booklet (reviewed April 2024)

RST Pensions Scheme Booklet (reviewed April 2024)

OPQ Retirement & Death Benefits Plan Booklet (reviewed April 2024)

Tables of Factors (reviewed April 2024)

Key Features (reviewed April 2024)



Past Papers 

From this page, it is possible to download Past Papers and Examiners’ Reports (including Common Errors and Summary Answers).


Booklets and Tables for March 2024 and September 2023 Examinations

XYZ Pension and Life Assurance Scheme Booklet (reviewed April 2023)

RST Pensions Scheme Booklet (reviewed April 2023)

OPQ Retirement & Death Benefits Plan Booklet (reviewed April 2023)

Tables of Factors (reviewed April 2023)

Key Features (reviewed April 2023)


September 2023 - Examinations

Part 1 - Determine Retirement Benefits without Special Circumstances

Part 2 - Determine Retirement Benefits with Special Circumstances

Part 1 - Determine Death Benefits without Special Circumstances

Part 2 - Determine Death Benefits with Special Circumstances

Part 1 - Determine Leaver Benefits without Special Circumstances

Part 2 - Determine Leaver Benefits with Special Circumstances

Determine Transfers In and Out

Examiners' Report - September 2023


Booklets and Tables for March 2023 and September 2022 Examinations

XYZ Pensions and Life Assurance Scheme Booklet (reviewed May 2022)

RST Pensions Scheme Booklet (reviewed May 2022)

OPQ Retirement & Death Benefits Plan Booklet (reviewed May 2022)

Tables of Factors (reviewed May 2022)

Key Features (reviewed May 2022)


March 2023 - Examinations

Part 1 - Determine Retirement Benefits without Special Circumstances

Part 2 - Determine Retirement Benefits with Special Circumstances

Part 1 - Determine Death Benefits without Special Circumstances

Part 2 - Determine Death Benefits with Special Circumstances

Part 1 - Determine Leaver Benefits without Special Circumstances

Part 2 - Determine Leaver Benefit with Special Circumstances

Determine Transfer Benefits In and Out

Examiners' Report March 2023 


September 2022 - Examinations 

Part 1 - Determine Retirement Benefits without Special Circumstances

Part 2 - Determine Retirement Benefits with Special Circumstances

Part 1 - Determine Death Benefits without Special Circumstances

Part 2 - Determine Death Benefits with Special Circumstances

Part 1 - Determine Leaver Benefits without Special Circumstances

Part 2 - Determine Leaver Benefits with Special Circumstances

Determine Transfers In and Out

Examiners' Report - September 2022



All Modules

The 2022-2023 Case Studies below are based on the Scheme Booklets and Tables of Factors that were used for the September 2022 and March 2023 examinations.


XYZ Pensions and Life Assurance Scheme Booklet (reviewed May 2022)

RST Pensions Scheme Booklet (reviewed May 2022)

OPQ Retirement & Death Benefits Plan Booklet (reviewed May 2022)

Tables of Factors(reviewed May 2022)

Key Features (reviewed May 2022)


DEATHS

XYZ Pension and Life Assurance Scheme (CAT A)

Case StudyExamNumber CrunchingAnswerTaking Action





Rita OranneDeaths 1Case Study
Answer
Letter
Sarah GreenDeaths 1Case Study
Answer
Letter
Alun SvenDeaths 1Case Study
Answer
Letter
Tom WhiteDeaths 2Case Study
Answer
Letter
June GrayDeaths 2Case Study
Answer
Letter
Gabriel LeveeDeaths 2Case Study
Answer
Letter


XYZ Pension and Life Assurance Scheme (CAT B)

Case StudyExamNumber CrunchingAnswerTaking Action





Johan SchmidtDeaths 1Case Study
Answer
Letter
Jose PedroDeaths 1Case Study
Answer
Letter
Andrew SmithDeaths 1Case Study
Answer
Letter
Diane HuanDeaths 2Case Study
Answer
Letter
Ana JillenDeaths 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Andrik PerezDeaths 1Case Study
Answer
Letter
Sarah DavidDeaths 1Case Study
Answer
Letter
Sean SabrinDeaths 1Case Study
Answer
Letter
Aaren BevanDeaths 2Case Study
Answer
Letter
Adam YoungDeaths 2Case Study
Answer
Letter


OPQ Retirement & Death Benefits 

Case StudyExamNumber CrunchingAnswerTaking Action





Sarah HamerDeaths 1Case Study
Answer
Letter
Ying ChenDeaths 1Case Study
Answer
Letter
Harry RichDeaths 1Case Study
Answer
Letter
Jayne HenrickDeaths 2Case Study
Answer
Letter
Jamie SamuelsDeaths 2Case Study
Answer
Letter
Sebastian RodriguezDeaths 2Case Study
Answer
Letter


RETIREMENTS

XYZ Pension and Life Assurance Scheme (CAT A)

Case Study
Exam
Number CrunchingAnswerTaking Action





Charles Melon
Retirements 1Case Study
Answer
Letter
Cynthia PlumRetirements 1Case Study
Answer
Letter
Adrian CherryRetirements 2Case Study
Answer
Letter
Alfred PeachRetirements 2Case Study
Answer
Letter
Jeffrey LemonRetirements 2Case Study
Answer
Letter


XYZ Pensions and Life Assurance Scheme (CAT B)

Case Study
Exam
Number CrunchingAnswerTaking Action





Jessica BeechRetirements 1Case Study
Answer
Letter
Percival WillowRetirements 1Case Study
Answer
Letter
Andrew RedwoodRetirements 2Case Study
Answer
Letter
Brian SpruceRetirements 2Case Study
Answer
Letter
Ruth BirchRetirements 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Emily PopeRetirements 1Case Study
Answer
Letter
James BishopRetirements 1Case Study
Answer
Letter
Adrian ArchdeaconRetirements 2Case Study
Answer
Letter
Jane PriestRetirements 2Case Study
Answer
Letter
Naomi AbbotRetirements 2Case Study
Answer
Letter


OPQ Retirement & Death Benefits Plan

Case Study
Exam
Number CrunchingAnswerTaking Action





Lorraine RandallRetirements 1Case Study
Answer
Letter
Peter KnottRetirements 1Case Study
Answer
Letter
Andrew EdrichRetirements 2Case Study
Answer
Letter
Denis UnderwoodRetirements 2Case Study
Answer
Letter
Helen SnowRetirements 2Case Study
Answer
Letter


LEAVERS

XYZ Pension and Life Assurance Scheme (CAT A)

Case StudyExamNumber CrunchingAnswerTaking Action





Madison ClarkeLeavers 1Case Study
Answer
Letter
Diego MolinaLeavers 2Case Study
Answer
Letter
Naomi HughesLeavers 2Case Study
Answer
Letter
George RussellLeavers 2Case Study
Answer
Letter
Lina GeelenLeavers 2Case Study
Answer
Letter


XYZ Pension and Life Assurance Scheme (CAT B)

Case StudyExamNumber CrunchingAnswerTaking Action





Lucas HunterLeavers 1
Case Study
Answer
Letter
Lara VinkeLeavers 2
Case Study
Answer
Letter
Binita KhatriLeavers 2
Case Study
Answer
Letter
Timothy JacksonLeavers 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Soren FlemingLeavers 1
Case Study
Answer
Letter
Emmett AppletonLeavers 1
Case Study
Answer
Letter
Evie JonesLeavers 2
Case Study
Answer
Letter
Mia WeberLeavers 2
Case Study
Answer
Letter
Tom RossLeavers 2
Case Study
Answer
Letter
Anna SutherlandLeavers 2
Case Study
Answer
Letter


OPQ Retirement & Death Benefits Plan

Case StudyExamNumber CrunchingAnswerTaking Action





Amari OladipoLeavers 1
Case Study
Answer
Letter
Colin BlackLeavers 1
Case Study
Answer
Letter
Stefan BergerLeavers 2
Case Study
Answer
Letter
Daisy WhiteLeavers 2
Case Study
Answer
Letter
Olivia ShawLeavers 2Case Study
Answer
Letter


TRANSFERS IN AND OUT

XYZ Pension and Life Assurance Scheme

Case Study
Exam
Number CrunchingAnswerTaking Action





Chang WuTVINCase Study
Answer
Letter
Isabella SerranoTVINCase Study
Answer
Letter
Emma WaltersTVOUTCase Study
Answer
Letter
Samuel KerrTVOUTCase Study
Answer
Letter


RST Pension Scheme

Case Study
Exam
Number CrunchingAnswerTaking Action





Patrick DavidsonTVINCase Study
Answer
Letter
Catia SilvaTVINCase Study
Answer
Letter
Penelope NelsonTVOUTCase Study
Answer
Letter
Forbes CameronTVOUTCase Study
Answer
Letter


OPQ Retirement & Death Benefits Plan

Case Study
Exam
Number CrunchingAnswerTaking Action





Mattis KappelTVINCase Study
Answer
Letter
Jasmine TaylorTVINCase Study
Answer
Letter
Siobhan KellyTVOUTCase Study
Answer
Letter
Dae SeongTVOUTCase Study
Answer
Letter
Claude CartierTVOUTCase Study
Answer
Letter
Rosalie DupontTVOUTCase Study
Answer
Letter




All Modules

The 2023-2024 Case Studies below are based on the Scheme Booklets and Tables of Factors that were used for the September 2023 and March 2024 examinations.


Booklets and Tables for the September 2023 and March 2024 Examinations

XYZ Pension and Life Assurance Scheme Booklet (reviewed April 2023)

RST Pensions Scheme Booklet (reviewed April 2023)

OPQ Retirement & Death Benefits Plan Booklet (reviewed April 2023)

Tables of Factors (reviewed April 2023)

Key Features (reviewed April 2023)


DEATHS

XYZ Pension and Life Assurance Scheme (Cat A)

Case StudyExamNumber CrunchingAnswerTaking Action





Tom DavyedDeaths 1Case Study
Answer
Letter
Simon TilsonDeaths 1Case Study
Answer
Letter
Katy PendroDeaths 1Case Study
Answer
Letter
Abigail HunterDeaths 2Case Study
Answer
Letter
Jol RannerDeaths 2Case Study
Answer
Letter
Sian BedrowDeaths 2Case Study
Answer
Letter


XYZ Pension and Life Assurance Scheme (CAT B)

Case StudyExamNumber CrunchingAnswerTaking Action





Anna  TilenDeaths 1Case Study
Answer
Letter
Johan SmichelDeaths 1Case Study
Answer
Letter
Tina GreenDeaths 1Case Study
Answer
Letter
Yung ChenDeaths 2Case Study
Answer
Letter
Daniel KovackDeaths 2Case Study
Answer
Letter
Peter LittleDeaths 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Staci JonesDeaths 1Case Study
Answer
Letter
Marie AntallDeaths 1Case Study
Answer
Letter
Amit RahalDeaths 1Case Study
Answer
Letter
Rajesh SinghDeaths 2Case Study
Answer
Letter
Jen YunnanDeaths 2Case Study
Answer
Letter


OPQ Retirement & Death Benefits 

Case StudyExamNumber CrunchingAnswerTaking Action





Tom JenkinsDeaths 1Case Study
Answer
Letter
Alan SmithDeaths 1Case Study
Answer
Letter
Joanne ParonDeaths 2Case Study
Answer
Letter
Phillipa GinoDeaths 2Case Study
Answer
Letter
Henrik BorgDeaths 2Case Study
Answer
Letter


RETIREMENTS

XYZ Pension and Life Assurance Scheme (CAT A)

Case Study
Exam
Number CrunchingAnswerTaking Action





Frederick KrcmarRetirements 1Case Study
Answer
Letter
Jessica RockRetirements 1Case Study
Answer
Letter
Basil LukemanRetirements 2Case Study
Answer
Letter
Elsie SearleRetirements 2Case Study
Answer
Letter
Henry BeatonRetirements 2Case Study
Answer
Letter


XYZ Pensions and Life Assurance Scheme (CAT B)

Case Study
Exam
Number CrunchingAnswerTaking Action





Ruby-Jane RodriguezRetirements 1Case Study
Answer
Letter
Rusty-John RodriguezRetirements 1Case Study
Answer
Letter
Rosy-Jess RodriguezRetirements 2Case Study
Answer
Letter
Rowby-Jake RodriguezRetirements 2Case Study
Answer
Letter
Roxy-Jade RodriguezRetirements 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Gillian AshtonRetirements 1Case Study
Answer
Letter
Sean GreavesRetirements 1Case Study
Answer
Letter
Bert TurnerRetirements 2Case Study
Answer
Letter
Brian WinstanleyRetirements 2Case Study
Answer
Letter
Michelle SherrockRetirements 2Case Study
Answer
Letter


OPQ Retirement & Death Benefits Plan

Case Study
Exam
Number CrunchingAnswerTaking Action





Dirk NoppertRetirements 1Case Study
Answer
Letter
Lucy SearleRetirements 1Case Study
Answer
Letter
Arthur WadeRetirements 2Case Study
Answer
Letter
Stefan RatajskiRetirements 2Case Study
Answer
Letter
Stephanie HumphriesRetirements 2Case Study
Answer
Letter


LEAVERS

XYZ Pension and Life Assurance Scheme (CAT A)

Case StudyExamNumber CrunchingAnswerTaking Action





Shania FoxLeavers 1Case Study
Answer
Letter
David HernandezLeavers 2Case Study
Answer
Letter
Kaye RichardsonLeavers 2Case Study
Answer
Letter
Blake Chapman
Leavers 2Case Study
Answer
Letter
Petra OlsenLeavers 2Case Study
Answer
Letter


XYZ Pension and Life Assurance Scheme (CAT B)

Case StudyExamNumber CrunchingAnswerTaking Action





Finlay KerrLeavers 1
Case Study
Answer
Letter
Viktoria SchusterLeavers 2
Case Study
Answer
Letter
Sarika VarmaLeavers 2
Case Study
Answer
Letter
Duncan BannnisterLeavers 2Case Study
Answer
Letter


RST Pension Scheme

Case StudyExamNumber CrunchingAnswerTaking Action





Simon ArmstrongLeavers 1
Case Study
Answer
Letter
Colton MillerLeavers 1
Case Study
Answer
Letter
Edie McGregorLeavers 2
Case Study
Answer
Letter
Emily DaviesLeavers 2
Case Study
Answer
Letter
Martin AtkinsonLeavers 2
Case Study
Answer
Letter
Elodie StokesLeavers 2
Case Study
Answer
Letter


OPQ Retirement & Death Benefits Plan

Case StudyExamNumber CrunchingAnswerTaking Action





Kwasi AkintolaLeavers 1
Case Study
Answer
Letter
Richard BarrLeavers 1
Case Study
Answer
Letter
Elias ScottLeavers 2
Case Study
Answer
Letter
Tara HerbertLeavers 2
Case Study
Answer
Letter
Michaela AdamsonLeavers 2Case Study
Answer
Letter


TRANSFERS IN AND OUT

XYZ Pension and Life Assurance Scheme

Case Study
Exam
Number CrunchingAnswerTaking Action





Ian FisherTVINCase Study
Answer
Letter
Sarah DanceTVINCase Study
Answer
Letter
Nicola PadgettTVOUTCase Study
Answer
Letter
Paul NoakesTVOUTCase Study
Answer
Letter


RST Pension Scheme

Case Study
Exam
Number CrunchingAnswerTaking Action





Daniel SmythTVINCase Study
Answer
Letter
Leonie BauerTVINCase Study
Answer
Letter
Bryson MillerTVOUTCase Study
Answer
Letter
Isabella WilliamsTVOUTCase Study
Answer
Letter


OPQ Retirement Death Benefits Plan

Case Study
Exam
Number CrunchingAnswerTaking Action





Alison BradshawTVINCase Study
Answer
Letter
Ashton KellyTVINCase Study
Answer
Letter
Camille RochefortTVOUTCase Study
Answer
Letter
Carmen PerezTVOUTCase Study
Answer
Letter
Johannes KallioTVOUTCase Study
Answer
Letter
Vikram BahriTVOUTCase Study
Answer
Letter




What are Study Skills

Study skills are the skills you need to enable you to study and learn efficiently – they are an important set of transferable life skills.

Our pages (see the link below) provide generic study skills advice – appropriate to learners across all disciplines and in different life circumstances: employed students, those returning to education later in life, those engaged in professional development and anybody who wants to learn how to learn effectively.

We are constantly being asked to provide guidance to our students in how to take an effective approach to their studies and learning, and have now produced this series of seperate pages that enable you to 'dip in and dip out' of the areas you need help with.  Please do not look at this website and think you have to read/review it from start to finish (unless you really want to?) - it is simply an aid to help you in areas where you need guidance i.e. answering multiple choice questions or how to write longer answers or an essay. It also provides you with information on what type of learner you are and as a result what is the best approach for you to study.

Finally there is a section on looking after you, and your mental health as an important overview on adjusting to the balance of work and study, or studying 'whilst everything else is still happening'.

Key points about study skills:

  • You will develop your own personal approach to study and learning in a way that meets your own individual needs. As you develop your study skills you will discover what works for you, and what doesn’t.
  • Study skills are not subject specific - they are generic and can be used when studying any area. You will, of course, need to understand the concepts, theories and ideas surrounding your specific subject area. To get the most out of your studies, however, you’ll want to develop your study skills.
  • You need to practise and develop your study skills.  This will increase your awareness of how you study and you’ll become more confident.  Once mastered, study skills will be beneficial throughout your life.
  • Study skills are not just for students.  Study skills are transferable - you will take them with you beyond your education into new contexts. For example, organisational skills, time management, prioritising, learning how to analyse, problem solving, and the self-discipline that is required to remain motivated.

Study skills relate closely to the type of skills that employers look for.

Click here:

PMI Study Skills - Tips, Techniques and Learner Wellbeing

Feedback Request 


If you have any feedback or general enquiries that can help improve the way we offer our qualifications to you, then you can call or send an email directly to one of the team on:

0207 247 1452

email

PMIQualifications@pensions-pmi.org.uk