Sentence Completion · Beginner Practice
Our Pension Scheme — A Guide for Members
13 questions · 20 min suggested · Lesson 23 of 31 · 30 XP
The company operates an occupational pension scheme that is open to all permanent employees. The scheme is intended to provide an income in later life that, together with the state pension, is reasonably proportional to the salary received during working years. This note summarises the main features for both new and long-serving members.
**Contributions.** Both the employee and the company contribute to the scheme each month. The employee's minimum contribution is 4 per cent of gross salary, and the company matches this contribution up to a maximum of 8 per cent. Employees are free to contribute more than 4 per cent; the company's matching contribution, however, does not go above 8 per cent regardless of how much the employee chooses to pay in.
**Investment choice.** Contributions are invested in one of three default funds — Cautious, Balanced and Growth — according to the member's stated approach to investment risk. Members who prefer to choose from a wider range of funds may do so through the scheme's online platform. Past performance of each fund is published quarterly. None of the funds provide a guaranteed return, and members are reminded that the value of their pension pot can go down as well as up.
**Taking the pension.** Under current rules, members may begin to take their pension from age 55. The scheme allows three main options at retirement: taking 25 per cent of the pot as a tax-free lump sum and converting the rest into a regular income; taking the whole pot as a series of flexible withdrawals; or a combination of the two. The scheme's administrators strongly recommend that any member approaching retirement obtain independent financial advice before making their final choice.
**Leaving the company.** Employees who leave the company may transfer the value of their pension pot to another registered scheme, or leave it in place until they reach retirement age. Contributions from the leaver and the company cease from the date of leaving.
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Questions 14–19
Sentence completion
- The minimum contribution by an employee to the pension scheme is ______ per cent of gross salary.
- The company will match the employee's contribution up to a maximum of ______ per cent.
- There are three default funds that differ in their approach to investment
- The performance of each fund is published every
- Members may begin to take their pension from the age of
- The scheme's administrators recommend that members obtain independent financial ______ before retirement.
Questions 20–22
Multiple choice
- Staff on probation on 31 March are
- The maximum bonus payable through the standard scheme is
- Final bonus figures are given to each employee
Questions 23–26
Matching Features
- A member of staff who has been in post for two years and has received their bonus notification in writing.
- An employee who has just begun a three-month probation on 1 March.
- A team that has been named for exceptional performance on a major project.
- An employee whose bonus calculation they believe is wrong and who has already received a written response from their line manager.