The role of Government is to set the rules and legal framework within which the various methods of making retirement provision are to operate, and to supervise and monitor these arrangements.
The Government sets the system for the social security system and makes decisions about the level of State Benefits that it pays.
The Government also decides the minimum level of income that every pensioner should have.
This section relates to the The Role of Government in Pensions and can be found in the relevant pages of the Retirement Provision Certificate Study Manual 2022.
2.Think about it
Fred is a member of his employer's DB scheme. He retires at his normal retirement date on 31 August 2016 on a salary of £60,000 having completed 40 years' pensionable service. The scheme provides pension using a 60ths accrual basis.
How much is Fred's retirement pension?
What is the value of Fred's pension for testing against the Lifetime Allowance?
Has Fred exceeded his Lifetime Allowance?
3. Fact Finding
HM Revenue & Customs
HM Revenue & Customs' website offers a lot of useful information and advice on pensions. Visit their website here
See the Pensions Tax Manual here and see if you can use that area to find the answers to the following questions:
You can now check your knowledge by a short test. Once completed then check your answers against those given.