INSU07029 2022 QFA Pensions - Practice

Identify the regulatory bodies involved in the regulation of pension arrangements and their roles, and interpret the obligations they place on pension arrangements;

Appraise the pensions and other benefits provided by the States Social Insurance system and the States Social Assistance system;

Evaluate investment linked pension policies, including retirement annuity contracts, PRSAs, employer pension schemes (including small self-administered pension schemes (SSAPS), buy out bonds, AVCs, annuities, ARFs and AMRFs;

Assess the pension needs of consumers;

Evaluate personal taxation liabilities, including the taxation treatment of pension contributions and pension benefits; and

Calculate sums accumulated or discounted at compound interest and the impact of inflation over time on a consumer’s financial needs and resources.

Act effectively under guidance in a peer relationship with qualified practitioners; learn to act in variable unfamiliar learning contexts managing tasks independently, professionally and ethically.

This module will be delivered through self-directed learning with the support of a supervisor and mentor in the student's workplace. This module complements the "QFA Pensions Theory Module" module and allows the student to integrate their academic knowledge gained into a practical work-based setting in the completion of a number of case studies and on-the-job tasks. The student will have ample choice to enable them to pick an agreed number of case studies and tasks from the work-based syllabus. The student should focus on case studies that are appropriate to their working environment. The completed case studies will be submitted through the learning management system having been signed off by their supervisor. The completed case studies will be reviewed by IT Sligo's academic programme leader.

There are specific requirements which must be met by the student in completing the experience-based syllabus. The work-based supervisor is required to validate that the case studies and tasks meet the attainment of the learning outcomes of the module. Specific criteria are provided for each of the case study areas. The student must answer the relevant questions posed in the prescribed format. The work-based supervisor will assess the case study/task on a pass / fail basis and the completed case studies (with the supervisor's report) are uploaded to the learner management system by the student. The case studies will not be considered/accepted as complete if they are not submitted with the supervisor's signature/report.

This module will be assessed 100% by continuous assessment.

This module has been designed to complement the ‘QFA Pensions Theory' module. The student will relate the topics covered in that module to their workplace environment and will work on these learnings in a business context.

This assessment examines the student's understanding and application of knowledge. These questions will require students to link pieces of information together in a cause-and-effect relationship and apply their knowledge and/or understanding to a given set of circumstances.

The answers will involve an essay-type response.

The work-based supervisor must sign-off on the student's submission. The student has a maximum of 3 opportunities to submit their work to their supervisor.

A submission will not be accepted or considered complete if the work-based supervisor has not signed off on the work and the sign-off sheet is not included with the submission.

The Need for Retirement Planning 

• Main Types of Personal Financial Needs
• Different Pillars of Retirement Provision
• Tax Incentives for Private Retirement Provision

State Pensions

• Introduction
• Social Insurance
• Social Assistance Pensions
• Taxation

Personal Contracts

• Introduction
• Who can take out an RAC and a PRSA?
• Income Tax Relief
• Charges
• When Can Benefits be taken from an RAC or PRSA?
• How Can Benefits be taken from an RAC or PRSA?
• Provision of Information
• Cooling-Off Period
• Pension Term Assurance

Employer Pension Schemes

• Introduction
• Approval
• Who Can be Included?
• What Benefits Can a Scheme Provide?
• Charges
• When Can Retirement Benefits be taken from a Scheme?
• How Can Retirement Benefits be taken?
• Maximum Approvable Benefits
• Maximum Contributions to DC Schemes
• Tax Relief on Contributions
• Additional Voluntary Contributions (AVCs)
• Provision of Information
• Termination of Employment
• Public Service Retirement Benefits

Transfers

• Introduction
• Allowed Transfers
• Transfers not Allowed
• Potential Risks of Taking a Transfer Value
• Potential Benefits of Taking a Transfer Value

Investment

• Introduction
• Investment Asset Classes
• Collective Investment Funds
• Default Investment Strategy (DIS)
• Investment Restrictions
• With Profit System

Pension Adjustment Orders

• What is a Pension Adjustment Order?
• Earmarking Retirement Benefits
• Variation
• A Nil PAO
• Taking a Transfer Value
• Death Before Leaving Service or Retirement
• Death of PAO Beneficiary Before Getting Benefits
• Death in Service Benefits
• Lapsing of PAO
• ARFs and AMRFs

Taxation

• Income Tax
• Universal Social Charge (USC)
• Tax Calculation Example
• Income Tax Age Exemption Limit
• Chargeable Excess Tax

Annuities

• What is an Annuity?
• Annuity Rates
• Using Annuity Rates
• Open Market Annuity Option
• Guaranteed Minimum Annuity Rates
• ARF Purchasing an Annuity
• Taxation
• Benefits of Annuities
• Risks of Annuities

Approved Retirement Funds (ARF)

• What is an ARF?
• Qualifying Fund Managers (QFMs)
• Lifetime Withdrawals from ARF
• Taxation of Withdrawals
• Investment Returns
• Charges
• Death
• AMRFs
• Benefits of ARFs
• Risks of ARFs
• Transfers

Regulatory Bodies

• The Pensions Authority
• The Revenue Commissioners
• The Central Bank of Ireland
• The Society of Actuaries in Ireland
• The Financial Services and Pensions Ombudsman
• Whistleblowing

Inflation and Compound Interest

• Calculations and Projections
• Inflation and Deflation
• Real Returns
• Compound Interest

Comparing Options and Plans

• Introduction
• RACs or PRSAs?
• Retain a Preserved Benefit or Take a Transfer Value?
• Traditional Benefit or ARF Option?
• AMRF or Annuity?
• ARF or Annuity
• Comparing Similar Products

Providing Advice

• Personal Financial Needs
• Authorisation to Provide Advice
• The Financial Planning Advisory Process
• The Consumer Protection Code
• Quantifying the Retirement Funding Need
• Suitability
• Assessing a Consumer’s Attitude to and Capacity for Investment Risk
• Making a Recommendation
• Execution Only