Transitional Provisions for aligning PIPs: Module 1 AF3 exam

The new transitional provisions for aligning pension input periods (PIPs) [applicable from 8 July; or in other words – immediately!] for the intention of aligning or removing PIPs from 6 April 2016, came as a bit of a surprise! A real surprise. It’s good in the long term, but a pain in the short term.

There is good news and bad news…

First the bad news.
The bad news is that the study notes and videos from Module 1 in the AF3 structured study plan will have to be updated. You will have to go back and revise some details on the new transitional provisions for aligning pension input periods. It’ll take about 2 hours, based on revised notes and watching new videos.

Second the good 3 parts:
1. Everything we’ve done in Module 1 so far is still useful and still core to our understanding of the transitional rules.
You cannot understand or apply the new transitional rules, without understanding the core/essential reading in Module 1. The transitional rules amend the current rules.

2. I’ll be putting together a series of short 5-10 min videos on each part of the new rules.
I reckon maybe 6 video’s @5mins each will bring you right bang up to speed. Those coupled with the amended study notes (based on the HMRC explanatory note, but not final legislation or has Royal Assent) will cover the detail.

3. There won’t be a big exam question on the new transitional provisions for aligning pension input periods (PIPs). I’ll explain more about that in the webinar today. I’m thinking that if (and it’s a big if), it comes up as a big question (more than 20 marks), it could only be asked about in the April 2016 exam. Right now there is not enough understanding nor time for the CII to confidently put together a robust and sizeable question on this topic, for the October AF3 exam.

That said, I’ll tell you more on thoughts about the possible questions from Module 1 (which could be asked in the exam), during today’s webinar.

As soon as the video explanations are done, I’ll send a note out to everyone.