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Can you pass the stakeholder test?

With just weeks to go before the official launch of stakeholder on April 6, Informed Choice managing director Nick Bamford says unless IFAs can correctly answer the 20 questions posed here,they are unfit to advise on stakeholder.


Bamford says: “In my view no one should be providing advice on the highly complex subject of stakeholder against personal pensions unless they can acquit themselves in this test.”


To put yourself to the test and prove you are fully fit to advise on stakeholder, you should answer all 20 questions in 40 minutes, according to Bamford.


The correct answers will be published in a future edition of Money Marketing and also on our website.


Personal Pension Schemes and Stakeholder Pension Schemes

You should provide detailed but short answers to each question:


1. Contributions to an approved personal pension scheme may come from three separate sources, what are they?


2.After April 5, 2001 contributions of up to £3,600 per year may by paid (the earnings threshold for 2001/2002) regardless of three factors which are?


3.After April 5, 2001 the maximum that may be applied as a premium by a member and their employer to secure death benefits under a term insurance policy is?


4.Where an employee contracts out of Serps through an appropriate personal pension the National Insurance Contribution Office will pass on the chosen scheme a rebate of what three elements?


5.What is a COMB?


6.What is the title of the date from which benefits under a personal pension scheme is known?


7.Protected rights benefits are available from what age?


8.What requirements are imposed on an immediate annuity purchased by a personal pension scheme fund?


9.The annuity may be able to be shaped in what ways?


10. Annuities paid from an approved personal pension scheme are?


11.Employer contributions to an employee&#39s approved personal pension scheme will generally be allowable for tax relief under?


12.An approved personal pension scheme (not including any protected rights fund) with a value of less than £25,000 my be treated as?


13.Give three examples of an authorised pension provider.


14.Define the term “basis year”


15.Under what conditions may contributions be made to an approved personal pension scheme by a transfer of shares?


16.David Brown wants to set up an approved personal pension scheme for his five-year-old son, what must he do?


17.Mark is single and employed he earns £3,000 which is less than his personal allowance for tax purposes. He must make his contribution to an approved personal pension plan gross of tax relief. True or false?


18.What is the earliest age at which personal pension benefits might be provided to a rugby league player?


19.From April 6, 2001 waiver of contributions will no longer be part of the approved personal pension scheme, what will be allowed instead?


20.From April 6, 2001, self employed members will be able to pay their approved personal pension scheme contributions net of tax relief. True or false?

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