• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

April 2009 Q5

S

Snowy

Member
What is the difference between the member taking exchange terms to be 90% of the value of the member's pension vs the plan allowing members to exchange up to 50% of their pension at retirement?

For this question, I would have used 90% commutation, but the solution uses 50% - what's the difference?

Also, how to get the spouse's death after retirement benefits in part (iv) of this question?
 
If you haven't figured it out yet, you've mixed up the two numbers.
50% is the maximum you can commute.
90% is the value that you commute at, ie 14.4 per £1pa = .9*16, better than current 12 per £1pa

iv) spouse's benefit is 1/6 of total so single is 5/6 so total is 6/5 of single, ie 6/5*16
 
You must log in or register to reply here.
Back
Top