Pensions Administration (FA2) develops your understanding of life and pensions issues, together with detailed guidance on the administration of these classes of business.
The unit begins by looking at UK state pensions, the types of private pensions available.
We look at the types of pension schemes provided by employers for their employees and by financial service companies.
We also look at workplace pension reforms that focus attention on work-based pensions arranged by an employer. These can be either the trust-based occupational schemes or contract-based personal pensions. We look at which employees are affected, qualifying earnings, qualifying schemes, auto-enrolment, postponing auto-enrolment, National Employment Savings Trust (NEST) and how the rules are enforced.
We look at providers of pension arrangements and how they are funded, considering public sector schemes, private sector schemes, self-administered schemes and insured schemes.
Finally, we look at the regulation of pension arrangements and the bodies responsible for aspects of pensions legislation and regulation, including Her Majesty’s Revenue and Customs (HMRC), the Department of Work and Pensions (DWP), The Pensions Regulator (TPR) and the Pensions Ombudsman.
Building a successful career in personal finance
Pensions Administration (FA2) provides the essential knowledge and skills needed by those working in, or starting a career in, administrative and pensions roles or staff working in the life and pensions sector.
Learning outcomes
At the end of this unit, candidates should be able to demonstrate a knowledge and understanding of:
- regulatory and legislative environment governing pensions;
- basic principles of pension taxation and administration;
- basic pension product types, including group pensions;
- with-profits and unit-linked investments;
- different pensions and options available when taking benefits.
Assessment
- 1 hour exam
- 50 multiple choice questions
- The standard pass mark is 70% (for more information on standard pass marks please see here)
- The 2024 pass rate for this unit was 50.4%
Revision aids available
The revision aids available for this unit are listed below. Find out more details.
