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The Technical Quiz: 31 January

To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these questions. Answers below.

The Technical Quiz MM 480

QUESTION ONE: The Basic State Pension was introduced to the UK in?

A) 1908

B) 1946

C) 1948

D) 1978

Please see this link on the TPAS website.

QUESTION TWO: The number of qualifying years of NI required for an individual to become entitled to the full rate of the Basic State Pension is currently

A) 90% of their working life

B) 46 years

C) 43 years for females and 46 years for males

D) 30 years

See gov.uk site here.

QUESTION THREE: The weekly amount of the Basic State Pension for a single person in 2012/13 is

A) £97.65

B) £102.15

C) £107.45

D) £109.90

See gov.uk site here.

QUESTION FOUR: The Basic State Pension is increased each year based upon a “triple lock”. Which one of the following best describes this increase mechanism?

A) It is increased each April based upon the highest of price inflation as measured by the CPI, average earnings and 2.5%. The indices used are those for the 12 months ending in the previous September.

B) It is increased each April based upon the highest of price inflation as measured by the RPI, average earnings and 2.5%. The indices used are those for the 12 months ending in the previous September.

C) It is increased each April based upon the highest of price inflation as measured by the CPI, average earnings and 2.5%. The indices used are those for the 12 months ending in the previous January.

D) It is increased each April based upon the highest of price inflation as measured by the RPI.

See gov.uk site here.

QUESTION FIVE: The process, if any, an individual has to follow to claim their entitlement to the Basic State Pension is

A) There is no process, it will be paid automatically at SPA based upon the NI records held by NISPI

B) The individual should be contacted by letter four months prior to attaining their SPA. If such a letter hasn’t been received by three months prior to their SPA they should contact the DWP

C) It is necessary for individuals to notify the DWP, by completing an on-line form, between nine and six months prior to their attaining SPA

D) For employees and those on certain State benefits it will be paid automatically at SPA based upon the NI records held by NISPI. For the self-employed, they will notify HMRC as part of their Self Assessment Return in the tax year immediately prior to their attaining SPA.

See gov.uk site here.

Questions supplied by Technical Connection

_________

Answers

1 C

2 D

3 C

4 A

5 B

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