Pensions World SA CPD Assessment Q1 2021

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Please read the tutorial before completing the assessment questions below.

Trustee Tutor: Issue 5 – Categories of retirement funds

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Name

Surname

SA ID Number

Company Name

FPI Memberhip Number (if available, otherwise type "no number")

Contact number

E-mail address

ASSESSMENT FORM

1. Choose the most correct answer: An occupational retirement fund is:

a. A discretionary savings fund to which all employees in a particular occupation contribute.

b. A discretionary savings fund to which all employees at a particular employer contribute.

c. A compulsory savings fund to which all employees in a particular occupation contribute.

d. A compulsory savings fund to which all employees at a particular employer contribute.

2. One of the consequences of the default regulations on preservation is that you might find members who were previously considered retail members, in traditionally considered occupational retirement funds.

a. True

b. False

3. An example of a retail retirement fund is:

a. A preservation pension fund.

b. A preservation provident fund.

c. A retirement annuity fund.

d. All of the above.

4. On 1 March 2016, the following changes to tax legislation were made:

a. Members were allowed to contribute a maximum of 27,5% of the greater of remuneration or taxable income on a tax deductible basis to a retirement annuity fund.

b. Members were allowed to contribute a maximum of 27,5% of approved remuneration to a pension fund.

c. All members could contribute R350 000 per year on a tax deductible basis to a provident fund.

d. A loophole was created whereby members were able to contribute more than 27,5% of the greater of remuneration or taxable income on a tax deductible basis, if they contributed to more than one retirement fund.

5. From 1 March 2021:

a. A member who resigns can take his full accumulated fund balance in cash from a pension fund.

b. A member who resigns can take his full accumulated fund balance in cash from a provident fund.

c. A member who resigns can take his full accumulated fund balance in cash from a retirement annuity fund.

d. a and b only.

6. Which piece of South African legislation governs who may give advice on financial products?

a. The Retirement Funds Act.

b. The Conduct of Financial Advisors Bill.

c. The Financial Advisory and Intermediary Services Act.

d. The Financial Crimes Control Act.

7. Which of the following statements is incorrect.

a. Member contributions to a retirement annuity fund are tax free to certain maximums.

b. Member contributions to a preservation pension fund are tax free to certain maximums.

c. Member contributions to a provident fund are tax free to certain maximums.

d. Member contributions to a pension fund are tax free to certain maximums.

8. In some instances, members of provident funds, pension funds and retirement annuity funds are able to take their full retirement benefit as a cash lump sum.

a. True

b. False

9. Choose the most correct answer: An unclaimed benefit fund:

a. Is used for those members who don’t wish to belong to their employer’s fund.

b. Is used for those beneficiaries who don’t wish to receive their benefits in cash.

c. Is no longer required in the retirement funds industry.

d. Is used for those beneficiaries who don’t provide their payment details to the fund.

10. Retirement funds in South Africa have the following in common:

a. They are managed by a board of trustees.

b. The need to comply with Regulation 28 to the Pension Funds Act.

c. The need to comply with the requirements of the Treating Customers Fairly framework.

d. All of the above.

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Verification

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ASSESSMENT FORM

Thank you for completing the assessment. Once you click on the "Submit Assessment" button below, your answers will be sent for verification and scoring.You will also receive an email containing your answers submitted.

Thank you for completing the assessment. Once you click on the "Submit Assessment" button below, your answers will be sent for verification and scoring.

You will also receive an email containing your answers submitted.