R04 Public sector schemes: free practice questions
5 free questions on Public sector schemes, part of learning outcome 4 (Defined benefit schemes). Pick an answer to check it, or open the answer to see why each option is right or wrong.
Question 1 of 5
Which of the main public sector schemes is funded?
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The answer is C: The Local Government Pension Scheme
The LGPS invests contributions in a fund. The other six main schemes are unfunded, with benefits guaranteed by statute.
Why the other options are wrong
A
The Teachers' scheme is notionally funded only.
B
The Civil Service scheme is unfunded.
D
The NHS scheme is unfunded, though notionally funded.
Question 2 of 5
What is the CARE accrual rate in the NHS Pension Scheme?
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The answer is C: 1/54th
The NHS scheme accrues at 1/54th, the Teachers' scheme at 1/57th and the Principal Civil Service scheme at 2.32%.
Why the other options are wrong
A
1/60th isn't the NHS rate.
B
2.32% is the Civil Service rate.
D
1/57th is the Teachers' scheme.
Question 3 of 5
Which members saw no change to their retirement age or pension from the public sector reforms?
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The answer is B: Those within ten years of NPA on 1 April 2012
Members within ten years of their normal pension age on 1 April 2012 were protected.
Why the other options are wrong
A
Joining date wasn't the test.
C
Length of service wasn't the test.
D
Earnings weren't the test.
Question 4 of 5
What does the public sector Transfer Club provide?
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The answer is D: A broadly year-for-year service credit between Club schemes
Club schemes give a service credit based on the old salary using standard tables, broadly year-for-year where provisions match.
Why the other options are wrong
A
It's limited to Club schemes.
B
It covers transfers between Club schemes.
C
No cash bonus is given.
Question 5 of 5
How can ministers affect transfers from the LGPS to schemes offering flexible benefits?
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The answer is D: They can reduce the CETV if transfers would increase cost to public funds
Ministers can cut CETVs where such transfers would significantly increase the risk or cost to public funds, similar to trustees reducing CETVs for underfunding.
Why the other options are wrong
A
They don't increase CETVs.
B
The LGPS is funded, so transfers are allowed.
C
No annuity requirement applies.
Practise all 15 Public sector schemes questions
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