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SP4 - Assignment X3

B

Bharti Singla

Senior Member
X3.3 (i) The question asks about the merits of the contribution rate being flat rate or age related.
But in the solution, both merits and demerits are provided. Any thoughts?
 
Hi Bharti

I think you are looking at the assignments for the 2021 exams here (or possibly earlier)?

I agree that if I were asked to "outline the merits..." I would focus on the positives, and in fact we've tweaked this question and the solution in the assignments for the 2022 exams to reflect this. (In the assignments for the 2022 exams, the question you refer to is now effectively X2.1(i) and the solution is expressed in terms of positives.)

I hope that helps.

Gresham
 
Yes, I had purchased the material last year which I am appearing for the upcoming diet. So, if such a question comes in exam and I outline the positives only, would I score full marks?
 
I think in this particular case the demerits of one are merits of the other so thinking about both is a very valid way of answering the question. The marking schedule this year for this question only gives marks for merits under each section.
 
Similarly, there is one more question.
Ch13 - Q13.1 The question talks about providing AVC under a final salary scheme i.e. DB scheme.
But in the solution, both the DB and DC schemes are considered for AVCs.
Any thoughts?
 
Hi Bharti

Re the assignment question: I don't think we've seen an SP4 exam question using this term recently, but I would expect you to be able to score full marks by giving positives because one definition of "merits" (from Oxford Languages) is "a good feature or point". As MarkingSteph says, one good way of generating ideas in this question is to consider the demerits of one option. These can often be presented as merits of the other.

Re Q13.1: A final salary scheme can allow members to build up final salary benefits from AVCs or money purchase / defined contribution benefits. So the solution explores both.

Best wishes

Gresham
 
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