Explain the difference between a group personal pension and a personal pension plan.

• A. A plan set up by an employer for a group; personal plans are not portable or controlled by the contributor.
• B. Group Personal Pension is identical to a Personal Pension Plan.
• C. Group Personal Pension is arranged through an employer for a group; Personal Pension Plan is individual, portable and controlled by the contributor.
• D. Group Personal Pension cannot be transferred.

Answer: (C)

The main idea is who sets up the pension and who has control over it. A Group Personal Pension is arranged by an employer for a group of employees. Each member has their own personal policy within that group arrangement, typically funded through payroll deductions, with the employer facilitating the scheme but not owning or fully controlling the individual policy.

A Personal Pension Plan, on the other hand, is an entirely personal product. It is owned by the individual, and the person has control over how much is contributed, how the funds are invested, and can usually transfer or switch providers if needed. It is portable and not tied to a single employer.

So the best description is that the Group Personal Pension is arranged through an employer for a group, while the Personal Pension Plan is individual, portable, and controlled by the contributor.