SP4 - X series 1 - Early retirement

Discussion in 'SP4' started by Bharti Singla, Feb 20, 2022.

  1. Bharti Singla

    Bharti Singla Senior Member

    In X series 1, qus 1.4 (ii) asks about the restrictions on early retirement benefits.
    A part of the solution is:

    Minimum benefit relative to the normal retirement benefit, i.e. maximum reduction to ensure that employers do not pay disproportionately low benefits.
    Maximum benefit possibly relative to normal retirement benefit to ensure individuals do not cease contributing to State benefits.

    Could anyone please explain these two points in simpler terms?
     
  2. Gresham Arnold

    Gresham Arnold ActEd Tutor Staff Member

    Hi Bharti

    [To anyone viewing this thread: these posts relate to X1.4 in the 2021 X Assignments. The question and solution have been updated in the 2022 X Assignments.]

    A minimum benefit relative to the normal retirement benefit - this ensures that individuals who wish to retire early are not penalised unfairly. For example, without this restriction, the benefit paid on early retirement could be set to be close to zero, even for someone entitled to a large pension payable from normal retirement age.

    A maximum benefit, possibly relative to normal retirement benefit - this stops early retirement benefits from being very generous and is relevant because it meets the aim of the government mentioned in the question ("The government also wishes to reduce early retirement numbers so citizens contribute to State benefits for longer.").

    Hope that helps

    Gresham
     
    Bharti Singla likes this.
  3. Bharti Singla

    Bharti Singla Senior Member

    Thanks for explaining. Just one follow up question on this.
    In the first point i.e. minimum benefit.. the company makes sure that early retirees are treated fairly..that is fine. But how this will meet the aim asked in question i.e. how it will restrict the no. of early retirement?
     
  4. Bharti Singla

    Bharti Singla Senior Member

    Also, I did purchase the material in 2021 and I am appearing for March 2022. I am not able to find the revised X assignment in CMP upgrade and there are significant changes in 2022 material.

    Could anyone please provide the replacement pages for X assignment?
     
  5. Gresham Arnold

    Gresham Arnold ActEd Tutor Staff Member

    Hi Bharti

    This point answers the other element of the question, ie to outline other restrictions likely to be applied to early retirement benefits.

    As you have purchased the X assignments previously, you may be able to purchase the 2022 assignments at a reduced price. More information can be found here under retaker discounts: https://acted.co.uk/paper_reduced_prices.html

    Best wishes

    Gresham
     

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