Andy commenced an unsecured pension on April 30, 2010. What is the latest date his maximum income must be recalculated?
A: April 30, 2013
B: April 30, 2014
C: April 30, 2015
D: April 30, 2016
Barry commenced capped drawdown on February 15, 2012 when the rounded down yield for 15-year UK gilts from the FTSE UK Gilt Indices was at an historic low of 2.25 per cent. Since then, his designated drawdown fund has performed surprisingly well. When can he next recalculate the maximum income under capped drawdown?
A: At any time of his choosing, subject to the agreement of the scheme administrator
B: On the next drawdown year anniversary, subject to administrator agreement
C: On the next drawdown year anniversary, not subject to the prior agreement of the scheme administrator
D: It is not possible to review the maximum income until February 15, 2015
Carmen commenced capped drawdown on April 6, 2012 and only took her PCLS, having decided not to take any drawdown pension income in her first drawdown year. Early in her second drawdown year she has decided to draw the maximum income annually in advance. Can she draw some or all of the income she did not take during her first drawdown year?
A: No, the maximum income that can be taken under capped drawdown in any year is 100 per cent of the basis amount
B: Up to 25 per cent of the maximum income from an earlier year can be drawn if no income was taken that drawdown year
C: Up to 50 per cent of the maximum income from an earlier year can be drawn if no income was taken that drawdown year
D: Up to 75 per cent of the maximum income from an earlier year can be drawn if no income was taken that drawdown year
Deewas 75 on March 2012 with two capped drawdown arrangements under her scheme with year-end anniversary dates of August 20 and February 2 respectively. She wants to align these. What are her options?
A: She can only shorten the year that is due to end on February 2, 2013 so that it ends on August 20, 2012
B: She can only extend the year that is due to end on August 20, 2012 so that it ends on February 2, 2013
C: She can shorten or extend either of the two anniversary dates so that their end dates coincide
D: She is not allowed to make changes to either of the anniversary dates
Questions supplied by Technical Connection
Answers: C, B, A, C