DC Pension Scheme Trustee Practices

Study Buddy

Harry CrummyQFA, SIA. CFP®, PTP

Dear student

Thank you for choosing LIA as your education provider. LIA caters for a wide range of students, from those studying for the first time to those who are returning to education after some time away. Whatever your circumstances we commend you on your decision to invest in yourself by furthering your education. We acknowledge this investment by you and want to ensure that your experience of studying with LIA is a positive one. One of LIA’s goals is to ensure that every student is given a fair chance of passing a fair exam and it is for this reason that we have developed a range of study resources to complement the textbook you have received.

There are many different reasons for choosing to study with us – from Minimum Competency Code requirements to improving work prospects or indeed to satisfy a long-held curiosity about one of the wide-ranging subjects we offer in our suite of courses. Whatever your reason for embarking on your course of study, the staff of LIA look forward to offering support, advice and guidance to you during the time you spend studying with us.

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The module you are undertaking is placed at Level 7 on the National Framework of Qualifications (NFQ). Level 7 on the NFQ requires a total of 130 hours study per module. This total is based on a blended learning approach i.e. reading the textbook and utilising the additional study resources available to you. Your Study Buddy is designed to help, support and guide you as you approach each resource. You will find the enclosed information invaluable in assisting you with your study timetable, and helping you to prepare for your exam.

I wish you all the very best with your studies.

Yours sincerely

Alice Blunden

Education Lead

LIA

Your Education. Your Career. Your W

ay.

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Your study journey - What to expect:

Accessing Your LIA

You can access all online study resources via Your

LIA on the LIA website (www.lia.ie). In order to

access this you will need your member number

(which you have received on your registration

letter) and a password. When you access your

personalised dashboard your study resources will

be available to you in the ‘My Modules’ section of

your home page.

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Study ResourcesCore Resource:

Textbook Your single most important study resource, the textbook is the core text for each module and is a vital resource for you to pass the exam. All sections of the textbook are examinable so it is essential that you study it thoroughly. All other study resources are designed to support the textbook, and should only ever be used in conjunction with it.

You will receive a hard copy of the 2018/2019 textbook when you first enrol on a module. A read-only PDF version is also available to you within Your LIA.

Additional Supports:

Student Introduction VideoA helpful introduction to studying, with tips and advice on making the most of your study time, and how best to prepare for the exam.

Study BuddyThis practical study companion with written tips on how best to study and a section for your own notes. This is an invaluable study aid for all students. It is recommended that you keep your Study Buddy close by throughout your studies. Now available online for your convenience.

Exam Revision LecturesWe provide revision lectures for most modules each term, some of which will be live streamed during the academic year. These classroom-based lectures provide an interactive learning experience that is dynamic and a valuable learning method for students. This resource enables students to dissect the course material with the help of our experienced lecturers to develop a comprehensive understanding of the topic as well as how best to approach the exam.

Lectures On DemandPre-recorded lectures to aid your study in the key sections of the textbook, available online 24/7. The flexibility of time, pace and place of study, afforded to students allows for a better balance of work, study and home life. Lectures On Demand also provide the opportunity for repeat viewing, enabling students to improve their learning by revising the important topics or any areas of difficulty.

Sample Papers and SolutionsOne sample paper and solutions are available for DC Pension Scheme Trustee Practices.

Tax Tables Included in your Study Buddy you’ll find essential tax information required for DC Pension Scheme Trustee Practices.

Examination attendance letter Approximately two-three weeks before you are due to sit your examination your Examination Attendance Letter will be available to download in Your LIA. This will provide important information regarding your exam venue and what you are permitted to bring to the exam.

Tips for maximising marks on the exam day:- Read the question(s) properly and understand what is actually being asked.

- There are approximately 1.2 minutes per question. Plan out your time accordingly so you don’t run out of time.

- Avoid spending too long on difficult questions for which your answer may, or may not, be correct, especially at the risk of running out of time to attempt the questions you are more confident about. Leave those difficult questions and return to them at the end.

- If you are unsure of an answer to a question DO NOT GUESS. Every incorrect answer warrants -1 mark.

- Do not leave the exam early. If you have finished, use your spare time to check your answers.

- Complete your answers using the answer sheet provided.

- If you’re transferring your answers from the question book to the answer sheet ensure you allow enough time to do so within the allocated exam time as you won’t be given any extra time.

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The MCQ scoring systemThe assessment for this module is a 120-minute (2 hour) examination with a required pass mark of 40%. The examination format is Multiple Choice Question (MCQ) Examination, in which candidates will be required to answer 100 MCQs. All questions in the examination are in the form of ‘one from four’ multiple choice (select one from options A, B, C or D). The answer sheet gives five options (A, B, C, D, E). If you do not know the answer to a question and do not want to select A, B, C or D you must fill in option E – do not leave any question blank. Three (3) marks are awarded for each correct answer, minus 1 (-1) mark is awarded for each incorrect response and zero (0) is awarded if you fill in the fifth option for the question (option E).

The MCQ Answer Sheet is scanned and corrected electronically. It is important that HB pencils provided at the exam venue are used to mark your answers. You should not complete the MCQ sheet by marking with ticks or lines. You must fill in the boxes fully, as per the above.

ResultsYou will receive an email notifying you of your provisional result (available in Your LIA) a few weeks after your examination. Your result will be brought to an exam board where they are ratified. This takes place a few weeks after the release of the provisional results. Following ratification of your result, you will again receive an email notifying you that this has taken place.

Upon successful completion of this exam, you may be entitled to apply for a designation under the Central Bank’s Minimum Competency Code (MCC) e.g. PTP. If completing a course that meets minimum competency, it is the designation that satisfies the Central Banks’ MCC requirements and NOT the underlying academic award. Therefore, if you are a first-time applicant, you MUST apply for your designation. Following the release of ratified results, the option to apply for this designation will appear on your dashboard in Your LIA. Any subsequent designations will automatically be applied to your record thereafter.

Once you have applied for your designation, the CPD team will contact you to advise of your CPD obligations.

A

Incorrect

B C D E

Incorrect

A B C D E

Incorrect

A B C D E

Correct

A B C D E

Module Outline

Module name DC Pension Scheme Trustee PracticesNumber of ECTS credits applicable to this module 5

Number of recommended study hours

130

Assessment method Multiple choice

Examination paper structure 100 questions

Required pass mark 40%

Module queriesIf you have any queries relating to this module you should contact the Education Team – education@lia.ie

Examination paper structure

2 hours are allowed to complete the DC Pension Scheme Trustee Practices examination paper.

Each examination paper contains 100 Multiple Choice Questions.

Each question contains a problem or question, followed by a choice of four options, from which you are asked to choose one as being the correct response. Only one of the four options is correct.

You must record your answer for each question on the MCQ Answer Sheet.

You should pay particular attention to any words in a question which have been emphasised in capitals, for example, MINIMUM, MAXIMUM, MAIN, BEST, NOT, LOWEST, etc.

Unless otherwise stated, the examination is based on the taxation position that is described in the current textbook.

Where relevant, tables and equations are printed at the end of the examination paper.

Some questions may involve calculations. Candidates are permitted to use a silent battery, or solar powered, non-programmable calculator during the examination and may find it helpful to do so. Mobile phone calculators are NOT permitted.

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Examination paper/chapter weighting

The number of questions per chapter which will appear on the examination paper corresponds broadly with the chapter weighting provided below. As indicated on the chart, each chapter carries a minimum and maximum number of possible questions, or weighting.

Whilst every section of the textbook is examinable, as you can see from the chart below, some chapters have a much larger weighting on the examination paper than others. It is important that you consider this weighting when studying your textbook, allocating your study time accordingly.

Chapter 1 2 3 4 5 6 7 8 9

Min. Weighting % 4 7 16 7 12 3 10 9 15

Max. Weighting % 7 11 19 9 16 4 12 11 21

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Pension Trustee Practitioner - Rate Table 2018

Income TaxTax Table

Tax Rate

Standard 20%

Higher rate 40%

Standard rate Band

Band

Single / Widowed without dependent children

€34,550

One Parent Family €38,550

Married / Civil Partners, one earner €43,550

Married / Civil Partners, two earners €43,550 + increase max €25,550*

*The increase is the lower of €25,550 and the amount of income of the spouse / civil partner with the lower income. The increase is not transfer-able between spouses / civil partners.

Pensions Income Tax Relief Income Tax Relief Limit on Occupational Pension Scheme / PRSA / Retirement Annuity Contract / RAC Trust Personal Contributions

Age attained during year % of Net Relevant Earn-ings (max €115,000)

Less than 30 15%

30 - 39 20%

40 - 49 25%

50 - 54 30%*

55 - 59 35%

60 and over 40%*The 30% limit above also applies to certain professional sportspeople (e.g. professional golfers) under 50 in relation to their income from their sports

occupation.

Taxation of Pensions Lump Sums

Total lump sums received since 7th December 2005

Tax

Up to €200,000 Tax-free

Next €300,000 Standard rate income tax

Balance Marginal rate income tax and USC

Chargeable Excess Tax

Total retirement benefits taken from 7th December 2005

Tax

Less than Threshold* Nil

Excess over Threshold (€2m) 40%*** Threshold is the Standard Fund Threshold (€2m) or Personal Fund Threshold, if greater.

** Tax reduced by a credit for any standard rate tax deducted from pension lump sums taken since 1st January 2011 and not previously offset against a chargeable excess tax liability.

Revenue Maximum Approvable Benefits under a DC Occupational Pension Scheme at NRALump Sum

Years of Service completed by NRA

Maximum Lump sum* as a fraction of final remuneration

1 - 8 3/80th for each year of service

9 30/80ths

10 36/80ths

11 42/80ths

12 48/80ths

13 54/80ths

14 63/80ths

15 72/80ths

16 81/80ths

17 90/80ths

18 99/80ths

19 108/80ths

20 120/80ths * cannot exceed 150% x final remuneration less any retained lump sums. A lump sum of 3/80ths of final remuneration for each year of service can always be provided at NRA, regardless of retained lump sums.

Annuity

Years of Service completed by NRA

Maximum annuity* as a fraction of final remuneration

1 1/10th x 2/3rds

2 2/10th x 2/3rds

3 3/10th x 2/3rds

4 4/10th x 2/3rds

5 5/10th x 2/3rds

6 6/10th x 2/3rds

7 7/10th x 2/3rds

8 8/10th x 2/3rds

9 9/10th x 2/3rds

10+ 2/3rds* cannot exceed 2/3rds x final remuneration less any retained pensions and the annuity equivalent of any lump sum taken. A pension of 1/80th of final remuneration for each year of service can always be provided at NRA, regardless of retained pensions.

State Pensions

Benefits Maximum weekly rate of benefit from March 2018

State Pension (Contributory) Personal Rate (Under 80)Person + Qualifies adult (Over 66)Person + qualified adult (under 66)

€243.30€461.30€405.40

Widow’s / Widower’s / Surviving Civil Partner’s (Contributory) (Under 66) €203.50

Invalidity PensionPersonal Rate (Under 66)Person + qualified adult (Under 66)

€203.50€348.80

LIAPATHWAY TO SUCCESS

The 2018/2019 textbook is your key study resource and must be covered in its entirety to prepare for the exam.

Watch the introductory video for an overview on study resources.

Make a personalised study plan to cover material within suggested 130 study hours.

Having read a chapter, view the corresponding Lecture On Demand. Note that not all chapters will have a Lecture On Demand. Makes notes in your textbook as you go along if you wish.

Test yourself with some sample papers. Note that these questions will not appear on the exam paper but will give you an indication as to how comfortable you are with the material.

Attend the face-to-face exam revision lectures for your chosen module if applicable. Come armed with questions!

Practice the sample papers under exam conditions, revise relevant areas.

Re-read the chapter and remember that all of your textbook is examinable!

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: 01 456 3890: education@lia.ie: www.lia.ie