The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009

• “F” means the sum of the interim pensions of all the survivors which would have been determined in accordance with Schedule 2 if— the survivors had been entitled to initial payments; and the modifications in paragraph 6 applied;
• “H” means the aggregate of any annual increases determined in accordance with paragraph 9 to which the qualifying member was entitled before the day on which the qualifying member died; and
• “N” means the number of survivors of that qualifying member.

• (v) in sub-paragraph (4) for “paragraphs 4 and 7” substitute “paragraph 7”;

• (d) after paragraph 3, insert—

(3A) (1) The amount of an interim ill health payment payable to a surviving dependant of a qualifying member shall be determined in accordance with sub-paragraphs (2) to (5). (2) Where an interim ill health payment is also payable to a survivor of the qualifying member and— (a) there is only one surviving dependant, the amount of the interim ill health payment shall be— $F 2 −G$ (b) there are two or more surviving dependants, the amount of the interim ill health payment shall be— $F−G N$ (3) Where the qualifying member does not have a survivor and— (a) there is only one surviving dependant, the amount of the interim ill health payment shall be— $F−G$ (b) there are two or more surviving dependants, the amount of the ill health payment shall be— $( 2×F )−G N$ (4) Where— (a) a survivor of a qualifying member, who is not a person who is treated as a survivor under regulation 37 of the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009, dies; or (b) a person ceases to be a surviving dependant of a qualifying member, the interim ill health payment payable to a surviving dependant of that qualifying member shall be redetermined with effect from the day after the day on which the survivor died or the person ceased to be a surviving dependant. (5) In this paragraph— - “A” means the amount of expected pension which would be determined in accordance with Schedule 2 if— the qualifying member were entitled to an annual payment; and the modifications in paragraph 6 applied; - “C” means the actuarial factor, determined in accordance with paragraph 5, to be applied; - “F” means one half of the product of— $( C( A×0.9 ) )+H$ - “G” means— where there is only one surviving dependant, the interim pension of the surviving dependant which would be determined in accordance with Schedule 2 if— the surviving dependant was entitled to an annual payment; and the modifications in paragraph 6 applied; where there are two or more surviving dependants, the sum of the interim pensions of all the surviving dependants which would be determined in accordance with Schedule 2 if— the surviving dependants were entitled to annual payments; and the modifications in paragraph 6 applied; - “H” means the aggregate of any annual increases determined in accordance with paragraph 9 to which the qualifying member was entitled before the day on which the qualifying member died; and - “N” means the number of surviving dependants of that qualifying member.

• (e) omit paragraph 4;

• (f) in paragraph 5—

• (i) omit “by the scheme manager”; and

• (ii) in sub-paragraph (c) for “scheme manager” substitute “person determining the factor”;

• (g) in paragraph 6—

• (i) before sub-paragraph (a) insert—

(za) in paragraph 2(1), for the words from “the later of” to the end of paragraph (b), substitute “the day on which the beneficiary is entitled to an ill health payment in accordance with regulation 17A”; (zb) in paragraph 4(3)— (i) after paragraph (b) insert “and”; (ii) after paragraph (c) omit “and”; and (iii) omit paragraph (d);

• (ii) in sub-paragraph (a) for “paragraphs 4(5)(b) and” substitute “paragraph”;

• (iii) for sub-paragraph (b) substitute—

(b) in paragraph 4(7)(b)(i) for “the day on which the qualifying member attains normal retirement age” substitute “the day from which the qualifying member is entitled to an ill health payment in accordance with regulation 17A(1)

• (iv) after sub-paragraph (b) insert—

(ba) in paragraph 4(10) for “annual payment” substitute “ill health payment

; and

• (v) in sub-paragraph (d) for “paragraphs 7 and 9” substitute “paragraphs 2A, 4(13) to (13D), 4A, 7, 9 and 10”;

• (h) in paragraph 7—

• (i) for sub-paragraph (1) substitute—

(1) Where the amount of a qualifying member’s expected pension determined in accordance with paragraph 2, 3 or 3A multiplied by 0.9 exceeds the FAS cap— (a) the amount of the ill health payment or interim ill heath payment payable to, or in respect of, that member under paragraph 2, 2A, 3 or 3A shall be determined on the basis that the product of that calculation was the amount of the FAS cap; and (b) the amount “A” under paragraph 2 for the purposes of paragraph (b)(i) in the definition of “underlying rate” in paragraph 9 shall be the amount of the FAS cap;

• (ii) in sub-paragraph (2), for “£26,000” substitute “the FAS cap”;

• (iii) after paragraph (2) add—

(3) In this paragraph, “the FAS cap” is— (a) where the qualifying member became entitled to an ill health payment in the period beginning on 1st April 2008 and ending on 31st March 2009, £27,987; (b) where the qualifying member became entitled, or becomes entitled, to an ill health payment in the period beginning on 1st April 2009 and ending on 31st March 2010, £29,386; and (c) where the qualifying member becomes entitled to an ill health payment in the period after 31st March 2010, the amount determined in accordance with sub-paragraph (4). (4) For each successive period of 12 months from 1st April 2010, the FAS cap shall be— (a) where paragraph (b) does not apply, the amount of the FAS cap for the previous period of 12 months increased by the percentage increase of the retail prices index for the period of 12 months ending on the 30th September falling within that previous period of 12 months; or (b) where there is no such percentage increase, the amount of the FAS cap for the previous period of 12 months. (5) Where the amount of the FAS cap determined in accordance with sub-paragraph (3)(c) results in a fraction of a pound, that fraction shall be treated as a pound.

; and

• (i) after paragraph 8 add—

(9) (1) Except where there is no percentage increase in the retail prices index for the period of 12 months ending with 31st May last falling before the indexation date, a beneficiary entitled to an amount determined in accordance with this Schedule shall be entitled, on the indexation date, to an increase of— (a) the appropriate percentage of the amount of the underlying rate immediately before that date, or (b) where the beneficiary first became entitled to an ill health payment during the period of 12 months ending immediately before that date, one twelfth of that amount for each full month since the date on which the ill health payment was first payable. (2) In this paragraph— - “appropriate percentage” means the lesser of— the percentage increase in the retail prices index for the period of 12 months ending with the 31st May last falling before the indexation date; and 2.5%; - “C” means the actuarial factor, determined in accordance with paragraph 5, to be applied; - “E” means so much of the expected pension as is attributable to post-1997 service; - “post-1997 service” means— pensionable service (whether actual or notional) which occurs on or after 6th April 1997; or where the ill health payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred on or after 6th April 1997; - “underlying rate” means— the aggregate of— the product of X multiplied by $( C×E )$; where the beneficiary is a survivor or a surviving dependant of a qualifying member, the product of X multiplied by W; and any annual increases to which the beneficiary is entitled in accordance with sub-paragraph (1) immediately before the indexation date; or where paragraph 7(1) applies, the aggregate of— so much of the amount “A” for the purposes of paragraph 2 as is, proportionately, attributable to post-1997 service; and any annual increases to which the beneficiary is entitled in accordance with sub-paragraph (1) immediately before the indexation date; - “W” means the aggregate of any annual increases to which the qualifying member was entitled in accordance with sub-paragraph (1) on the day before the day on which the qualifying member died; - “X” means— 0.9, where the beneficiary is the qualifying member; 0.45, where the beneficiary is a survivor who is not a survivor to whom paragraph 2(2A) applies; the product of 0.45 divided by Y, where the beneficiary is a survivor to whom paragraph 2(2A) applies; the product of 0.9 divided by Z, where the beneficiary is a surviving dependant and the qualifying member does not have a survivor; or the product of 0.45 divided by Z, where the beneficiary is a surviving dependant and an ill health payment is also payable to a survivor of the qualifying member; - “Y” means the number of survivors of the qualifying member; and - “Z” means— where there is only one surviving dependant, 2; or where there is more than one surviving dependant, the number of surviving dependants of the qualifying member. (3) In any case where the scheme manager is satisfied, having regard to the information available, that it is not possible for the scheme manager to determine the amount of the amount “A” which is attributable to post-1997 service for the purposes of this paragraph, the scheme manager shall determine that amount, having regard to such matters as the scheme manager considers relevant. (10) (1) This paragraph applies where— (a) on the first indexation date following the date on which the beneficiary first became entitled to an ill health payment; and (b) on any indexation date following that first indexation date; the annual rate of annuity which has been or could have been paid to the beneficiary as at that indexation date as a result of the purchase of an annuity with the assets available to discharge the liability of the scheme to, or in respect of, the qualifying member after that liability has, or had been, determined, is higher as a result of indexation or revaluation than the annual rate determined in accordance with the preceding paragraphs of this Schedule. (2) Where this paragraph applies, the scheme manager shall redetermine the ill health payment payable to that beneficiary with effect from the indexation date. (3) When redetermining an ill health payment under sub-paragraph (2), the actual pension shall be the annual rate of annuity which has been or could have been paid to the beneficiary as at the indexation date as a result of the purchase of an annuity with the assets available to discharge the liability of the scheme to, or in respect of, the qualifying member after that liability has, or had been, determined, on the basis of, and having regard to, the matters referred to in paragraph 2(3) of Schedule 2. (4) In any case where the scheme manager is satisfied, having regard to the information available to it, that it is not possible for it to determine the annual rate of annuity for the purposes of this paragraph, it shall determine that annual rate having regard to such matters as it considers relevant. (5) Where the scheme manager is satisfied that increases have been, are being, or will be made to the annual rate of annuity, and it considers that those increases are not reasonable, it may determine the annual rate of annuity for the purposes of this paragraph on the basis of the sum which would discharge the liability of the scheme to the beneficiary and of such other matters as it considers relevant. (11) (1) This paragraph applies where— (a) the annual rate of the pension determined for the purposes of calculating the expected pension under paragraph 3(2) or 4(2) of Schedule 2 (for the purposes of determining an ill health payment) includes an amount which, under the scheme rules, was payable for a period which is shorter than the period in respect of which the remainder of the pension was payable; and (b) an annuity has been purchased for the beneficiary which provides for payment of a pension to the beneficiary at a lower annual rate from the date on which amount referred to in paragraph (a) would have ceased to be payable under the rules of the pension scheme. (2) Where this paragraph applies, the scheme manager shall redetermine the ill health payment payable to that beneficiary with effect from the date on which the amount referred to in sub-paragraph (1)(a) would have ceased to be payable under the rules of the pension scheme. (3) When redetermining an ill health payment under sub-paragraph (2)— (a) the annual rate of the pension for the purposes of paragraph 3(3)(a) of Schedule 2 shall be the annual rate of pension which was or should have been in payment to the qualifying member in accordance with the scheme rules in respect of rights accrued in a qualifying pension scheme less the annual amount which was payable for the shorter period referred to in sub-paragraph (1)(a), as at the day which is the day before the day on which the qualifying pension scheme began to be wound up; (b) the annual rate of the pension for the purposes of paragraph 3(3)(b)(i) of Schedule 2 shall be the amount which was or should have been in payment to the qualifying member in accordance with the scheme rules in respect of rights accrued in a qualifying pension scheme less the annual amount which was payable for the shorter period referred to in sub-paragraph (1)(a), as at the day on which the qualifying member attained normal retirement age; (c) the amount specified in paragraph 4(3)(a) of Schedule 2 shall be the amount determined in accordance with that paragraph less the amount which is the amount which was payable for the shorter period referred to in sub-paragraph (1)(a); (d) the amount which was payable for the shorter period referred to in sub-paragraph (1)(a) shall be disregarded when determining the revaluation amounts; and (e) the beneficiary shall be entitled to so much of the total amount of the annual increases determined in accordance with paragraph 9 payable to the beneficiary as at the date referred to in sub-paragraph (2) as are attributable to the amount of expected pension determined in accordance with this paragraph. (4) In any case where the scheme manager is satisfied, having regard to the information available to it, that it is not possible for it to determine the annual rate of pension for the purposes of sub-paragraph (3)(a) or (b) or any one of the amounts for the purposes of sub-paragraph (3)(c) to (e) it shall determine that annual rate or amount, having regard to such matters as it considers relevant. (5) In sub-paragraph (3)(d) “the revaluation amounts” means— (a) the revaluation amount referred to in paragraph 3(3)(b)(ii) of Schedule 2; and (b) the revaluation amounts referred to in paragraph 4(3)(b) and (c) of Schedule 2.

PART 3 — Amendment of the FAS Information and Payments Regulations

Amendment of the FAS Information and Payments Regulations

32

• (1) The FAS Information and Payments Regulations are amended in accordance with this regulation.

• (2) In regulation 2 (interpretation)—

• (a) in paragraph (1)—

• (i) before the definition of “the FAS Regulations” insert—

• “the 2009 Regulations” means the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009;
• “the Act” means the Pensions Act 2004¹⁸;

• (ii) omit the definition of “appointed representative”;

• (iii) at the end of the definition of “beneficiary” insert “and surviving dependants”;

• (iv) in the definition of “potential beneficiary”, for “the scheme manager in accordance with regulation 3(3)(a)” substitute “in accordance with regulation 3(3)(a) to the scheme manager or a person with whom the scheme manager has made arrangements under paragraph 18 of Schedule 5 to the Act”; and

• (v) for the definition of “survivor” substitute—

• “surviving dependant” shall be construed in accordance with regulation 16B of the FAS Regulations;
• “survivor” shall be construed in accordance with regulation 16A of the FAS Regulations;

; and

• (b) after paragraph (1) insert—

(1A) In the definition of “normal retirement age” in paragraph (1), “the rules of that scheme” means the rules of the occupational pension scheme on the date on which benefits ceased to accrue to that member. (1B) Subject to paragraph (1C), in these Regulations “appointed representative” means a person— (a) whose name and address, and those appointment by a beneficiary or potential beneficiary for the purposes of providing information to the scheme manager under regulation 4, have been notified to the scheme manager in a document signed by the beneficiary or potential beneficiary in question or by the legal representative of the beneficiary or potential beneficiary; and (b) whose appointment has been consented to by the scheme manager. (1C) Subject to paragraph (1D), where a beneficiary or a potential beneficiary is a child aged less than 18, the scheme manager may regard— (a) a parent of the child; (b) a person with parental responsibility within the meaning of section 3 of the Children Act 1989¹⁹ in relation to the child; (c) a person with parental responsibility or parental rights under the Children (Scotland) Act 1995²⁰ in relation to the child; or (d) a person with parental responsibility within the meaning of Article 6 of the Children (Northern Ireland) Order 1995²¹ in relation to the child, as the appointed representative of that child. (1D) Where— (a) no person referred to in paragraph (1C)(a) to (d) is known to the scheme manager, the scheme manager may appoint a person to act as the appointed representative of a child; (b) more than one person referred to in paragraph (1C)(a) to (d) wishes to act as the child’s representative for the purposes of these Regulations, the scheme manager may appoint one of those persons as the appointed representative of that child. (1E) In— (a) regulation 3(3)(a) (information to be provided by, and to, appropriate persons); (b) regulation 4 (information to be provided by beneficiaries and potential beneficiaries and their personal representatives); (c) regulation 5 (method of providing information); (d) regulation 6(1) (insufficient or unsuitable information); and (e) paragraph 1(2) of Schedule 1 (information to be provided by appropriate persons), a reference to the scheme manager includes a reference to a person with whom the scheme manager has made arrangements under paragraph 18 of Schedule 5 to the Act and who is authorised by the scheme manager to be the person to whom information is to be provided in accordance with these Regulations.

• (3) In regulations 3(1) and 6(1)(a), for “him” substitute “it”.

• (4) In each place it occurs in—

• (a) regulation 3(2);

• (b) regulation 6; and

• (c) paragraph 1(1) of Schedule 1,

for “he” substitute “it”.

• (5) In regulation 5(4)(b), after “a survivor” insert “or surviving dependant”.

• (6) In regulation 6(1), for “he may” substitute “the scheme manager may”.

• (7) In regulation 7, after paragraph (3) insert—

(4) An amount recovered by the scheme manager under paragraph (1) must be paid to the Secretary of State.

• (8) In regulation 8(1) omit “monthly”.

• (9) In paragraph 1 of Schedule 1 (information to be provided by appropriate persons)—

• (a) in the table in sub-paragraph (2)—

• (i) in the second column of the fourth item in the table in sub-paragraph (2)—

• (aa) after “or any survivor” insert “or surviving dependant”;

• (bb) after paragraph (f) insert—

(fa) such information as is necessary to determine if the member or former member has a survivor or any surviving dependants;

• (cc) after paragraph (j) insert—

(ja) where applicable, the annual rate of annuity which has been purchased for or in respect of a beneficiary or potential beneficiary, the amount paid for that annuity, the date on which it was purchased and the name, address and telephone number of the annuity provider; (jb) where applicable, information detailing whether a purchased annuity included revaluation, indexation or payments at or in respect of ages other than normal retirement age and if so, the relevant rate secured and the dates at which such payments or increases are payable; (jc) where applicable, the amount of any transfer payment, interim pension or lump sum (including any winding-up lump sum) made after the day on which the scheme began to be wound up and the dates on which those amounts were paid; (jd) where applicable, any amount paid to restore the state scheme rights of a member or former member of the scheme and the date on which that amount was paid;

; and

• (dd) in paragraph (l) after “inaccurate in a particular case” insert “or will not be sufficient to enable a reviewable determination to be made”;

• (ii) after the sixth item insert a seventh, eighth, ninth, tenth and eleventh item containing—

• (aa) in the second column of the seventh item, the words “Any changes to information provided in accordance with these Regulations.”;

• (bb) in the third column of the seventh item, the words “The period of 14 days beginning on the day on which the change took place.”;

• (cc) in the second column of the eighth item, the words “Details of all expenditure incurred by the scheme in each period of 3 months (or such shorter or longer period as the scheme manager may determine in relation to a qualifying pension scheme), the first such period beginning on the date determined by the scheme manager in respect of the qualifying pension scheme.”;

• (dd) in the third column of the eighth item, the words “The period of 14 days following the end of the period to which the information relates.”;

• (ee) in the second column of the ninth item, the words “Details of any significant changes in the level of expenditure incurred by the scheme.”;

• (ff) in the third column of the ninth item, the words “The period of 14 days beginning on the day on which the change took place.”;

• (gg) in the second column of the tenth item, the words “Details of any contemplated significant changes in the investment of the scheme’s assets”;

• (hh) in the third column of the tenth item, the words “The period of 14 days beginning on the day on which the appropriate person becomes aware of any such contemplated changes”;

• (ii) in the second column of the eleventh item, the words—

Details of any— (a) legal actions or proceedings; (b) contemplated legal actions or proceedings; (c) complaints made, or disputes or questions referred, to the Pensions Ombudsman under Part 10 of the Pension Schemes Act 1993²² or, as the case may be, Part 10 of the Pension Schemes (Northern Ireland) Act 1993²³; or (d) arbitration, dispute resolution procedures or negotiations intended to lead or leading to a settlement or compromise of any legal action or proceeding, relating to a qualifying pension scheme.

; and

• (jj) in the third column of the eleventh item, the words—

The latest of— (a) the period of 28 days beginning on the day on which the 2009 Regulations come into force; (b) the period of 28 days beginning on the notification date; or (c) the period of 28 days beginning on the day on which the appropriate person becomes aware of any of the matters in the second column.

• (b) for sub-paragraph (3) substitute—

(3) Subject to sub-paragraphs (3A) and (4), the period for information to be provided in relation to each member or former member or any survivor or surviving dependant of a member or former member of a qualifying pension scheme is— (a) in relation to each member or former member who has not attained normal retirement age on or before the date which is 6 months after the date on which the 2009 Regulations come into force, the period of 3 months ending 3 months before the day on which the member or former member attains normal retirement age; (b) in relation to each member or former member who has attained normal retirement age on or before the date on which the 2009 Regulations come into force, the period ending 3 months after that date; (c) in relation to any survivor or surviving dependant for or in respect of whom an annuity has been purchased and is in payment before the date on which the 2009 Regulations come into force, the period ending 3 months after those Regulations come into force; or (d) in relation to any survivor or surviving dependant of a qualifying member who dies after the date on which the 2009 Regulations come into force, the period ending one month after the day on which the appropriate person became aware that the qualifying member has died. (3A) Where— (a) accurate information of the description specified in the table in sub-paragraph (2) can be provided before the period determined in accordance with sub-paragraph (3), the period for information to be provided is the period ending as soon as that accurate information can be provided; (b) the scheme manager determines that the information can be, and should be, provided in a period other than the period determined in accordance with sub-paragraph (3), scheme manager may determine the period for the provision of that information; and (c) information has been requested by the scheme manager in accordance with these Regulations before the date on which the 2009 Regulations come into force, the information shall be provided by the date determined by the scheme manager in that request.

• (c) omit sub-paragraphs (5) and (6).

• (10) After paragraph 1 of Schedule 1 insert—

(2) (1) This paragraph applies where the scheme manager has made arrangements with a person under paragraph 18 of Schedule 5 to the Act (as modified by Schedule 1 to the FAS Regulations) and the scheme manager has authorised that person to be the person to whom information is to be provided in accordance with these Regulations. (2) Where this paragraph applies, appropriate persons shall be notified of the identity of the person so authorised in writing by— (a) the scheme manager; or (b) the person with whom the scheme manager has made arrangements under paragraph 18 of Schedule 5 to the Act.

• (11) After paragraph 1 of Schedule 2 (information to be provided by beneficiaries and potential beneficiaries) insert—

(2) (1) This paragraph applies where the scheme manager has made arrangements with a person under paragraph 18 of Schedule 5 to the Act (as modified by Schedule 1 to the FAS Regulations) and the scheme manager has authorised that person to be the person to whom information is to be provided in accordance with these Regulations. (2) Where this paragraph applies, beneficiaries and potential beneficiaries shall be notified of the identity of the person so authorised in writing by— (a) the scheme manager; or (b) the person with whom the scheme manager has made arrangements under paragraph 18 of Schedule 5 to the Act.

PART 4 — Amendment of the FAS Internal Review Regulations and the FAS Appeals Regulations

Amendment of the FAS Internal Review Regulations

33

• (1) The FAS Internal Review Regulations are amended in accordance with this regulation.

• (2) In each place it occurs (except in regulations 2(1)(c) and 5(1)(b)(ii)), after “member eligibility” insert “, survivor eligibility”.

• (3) In regulation 1, after the definition of “scheme manager” insert—

• “surviving dependant” has the meaning given in regulation 2(1) of the FAS Regulations;

• (4) In regulation 2—

• (a) after paragraph (1)(c) insert—

(ca) whether or not a person is a survivor or surviving dependant of a qualifying member (“survivor eligibility”)

• (b) in paragraph (1)(d)—

• (i) after “a survivor” insert “or surviving dependant”; and

• (ii) after “regulation 17” insert “or 17C”; and

• (c) in paragraph (1)(f), after “a survivor” insert “or surviving dependant”.

• (5) In regulation 3—

• (a) in paragraph (1)(b)(ii), for “or survivor” substitute “, survivor or surviving dependant”;

• (b) in paragraph (1A)(a) after “issued on the” insert “scheme manager’s”; and

• (c) in paragraph (1A)(b) after “as a group,” insert “or to their survivors and surviving dependants, or to a class of such survivors or surviving dependants”.

• (6) In each place it occurs in—

• (a) regulation 4(2)(b);

• (b) regulation 8(1)(b)(i) and (2)(a); and

• (c) regulation 11(1) to (3),

for “he” substitute “it”.

• (7) In each place it occurs in regulation 8(1) for “his” substitute “its”.

• (8) In each place it occurs in regulation 8(2) and 10(b) for “him” substitute “it”.

• (9) After regulation 17, insert—

(18) (1) Subject to paragraph (2), where any interested person is a child aged less than 18, the scheme manager may treat— (a) a parent of the child; (b) a person with parental responsibility within the meaning of section 3 of the Children Act 1989 in relation to the child; (c) a person with parental responsibility or parental rights under the Children (Scotland) Act 1995 in relation to the child; (d) a person with parental responsibility within the meaning of Article 6 of the Children (Northern Ireland) Order 1995 in relation to the child, as a person appointed to act as that child’s representative for the purposes of these Regulations. (2) Where— (a) no person referred to in paragraph (1) is known to the scheme manager, the scheme manager may appoint a person to act as that child’s representative for the purposes of these Regulations; (b) more than one person referred to in paragraph (1) wishes to act as the child’s representative for the purposes of these Regulations, the scheme manager may appoint one of those persons as the representative of that child.

Amendment of the FAS Appeals Regulations

34

• (1) The FAS Appeals Regulations are amended in accordance with this regulation.

• (2) In regulation 2 (interpretation)—

• (a) in the definitions of “beneficiary” and “member assessment decision” after “survivor” insert “or surviving dependant”;

• (b) after the definition of “subsequent review decision” insert—

• “surviving dependant” has the meaning given in regulation 2(1) of the FAS Regulations;

; and

• (c) after the definition of “survivor” insert—

• “survivor eligibility decision” means a review decision made by the scheme manager under the FAS Internal Review Regulations which relates to a determination as to whether or not a person is a survivor or surviving dependant of a qualifying member;

• (3) In regulations 6(2)(b) (notice of appeal) and 17(4)(a) (time and place of oral hearings), after “member eligibility decision” insert “, a survivor eligibility decision”.

• (4) In regulation 23(9) for “him” substitute “it”.

PART 5 — Amendment of the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008

Amendment of the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008

35

In the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008²⁴ omit Part 4 (transitional provision).

PART 6 — Transitional provisions

Transitional provision - reporting

36

• (1) The Secretary of State must prepare a report on the financial assistance scheme for the period beginning on 1st April 2009 and ending on the day before the day these Regulations come into force.

• (2) The report must deal with the operation of the financial assistance scheme in the period to which it relates and in particular—

• (a) the number of persons who have received payments under the FAS Regulations; and

• (b) the total amount of those payments.

• (3) The Secretary of State must lay a copy of the report prepared in accordance with paragraph (1) before each House of Parliament.

Transitional provisions – payments to survivors

37

Where—

• (a) the widow, widower or surviving civil partner of a qualifying member has, before the date on which these Regulations come into force, received an instalment of an annual payment, an initial payment, an ill health payment or an interim ill health payment; and

• (b) that widow, widower or surviving civil partner would not otherwise be entitled to that payment following the coming into force of these Regulations;

that widow, widower or surviving civil partner shall be treated as a survivor of a qualifying member for the purposes of the FAS Regulations.

Transitional provisions – payments to beneficiaries

38

• (1) Except where paragraph (4) applies, where a beneficiary was a beneficiary to whom regulation 8 of the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 applied before the coming into force of these Regulations, the amount of that beneficiary’s initial payment or annual payment shall be the amount to which the beneficiary was entitled before the coming into force of these Regulations.

• (2) Except where paragraph (4) applies, where a beneficiary—

• (a) was not a beneficiary to whom regulation 8 of the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 applied;

• (b) had received an instalment of an annual payment or ill health payment before the date on which these Regulations come into force; and

• (c) was entitled to a higher amount by way of annual payment or ill health payment before these Regulations come into force,

the amount of that beneficiary’s annual payment or ill health payment shall be the amount to which the beneficiary was entitled before the coming into force of these Regulations.

• (3) Except where paragraph (4) applies, where a qualifying member to whom paragraph (1) or (2) applies dies, the expected pension and actual pension for the purposes of determining any payment to a survivor or surviving dependant of that qualifying member shall be the amounts which were the expected pension and actual pension for the purposes of the determination of the payment in respect of the qualifying member.

• (4) This paragraph applies where the amount of the annual payment, initial payment or ill-health payment to which the beneficiary would be entitled if paragraphs (1) to (3) did not apply would be higher than the amount to which the beneficiary is entitled in accordance with paragraphs (1) to (3).

• (5) Where paragraph (1) or (2) applies, the beneficiary’s expected pension and actual pension shall be the amounts determined in accordance with the FAS Regulations and regulation 8 of the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 as if these Regulations had not come into force.

Signed

Signed by authority of the Secretary of State for Work and Pensions.

Angela Eagle — Minister of State, — Department for Work and Pensions — 9th July 2009

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations amend the Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986, as amended) (“the FAS Regulations”) which allow for payments to be made to, or in respect of, certain members or former members of certain occupational pension schemes where the liabilities of the scheme to those members are unlikely or unable to be satisfied in full.

They also amend the Financial Assistance Scheme (Provision of Information and Administration of Payments) Regulations 2005 (S.I. 2005/2189, as amended), the Financial Assistance Scheme (Internal Review) Regulations 2005 (S.I. 2005/1994, as amended), the Financial Assistance Scheme (Appeals) Regulations (S.I. 2005/3273, as amended) and the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432) in relation to the financial assistance scheme (“the FAS”).

Part 2 amends the FAS Regulations. In particular it—

• (a) confers the function of managing the FAS (being “the scheme manager”) on the Board of the Pension Protection Fund and makes related provision, including provision as to financial arrangements;

• (b) makes provision for certain information held to be disclosed to or by the scheme manager;

• (c) provides a discretion for the scheme manager to make payments in respect of qualifying pension schemes to enable or assist the payment of administration or other costs relating to those schemes;

• (d) makes changes to the way in which the FAS payments are calculated—

• (i) to take account of any changes in any annuity purchased for, or in respect of, a qualifying member;

• (ii) to take account of bridging pensions and pension payable at ages other than the normal retirement age;

• (iii) to change provisions relating to the FAS cap; and

• (iv) to provide for an annual increase to the payments in respect of any pensionable service after 6 April 1997;

• (e) makes provision for payments to surviving dependants of qualifying members, amends the definition of survivor to extend survivor payments to surviving partners of the qualifying member and makes specific provision in relation to survivors of a qualifying member who is a party to a polygamous marriage; and

• (f) makes certain changes to the administration of the FAS, for example provision so that FAS payments can be paid in instalments other than monthly instalments and provisions to enable the scheme manager to delegate certain functions to another person.

Part 3 amends the Financial Assistance Scheme (Provision of Information and Administration of Payments) Regulations 2005. In particular it amends the information which must be provided to the scheme manager (or to a person authorised by the scheme manager) to support the changes being made to the FAS.

Part 4 amends the Financial Assistance Scheme (Internal Review) Regulations 2005 and the Financial Assistance Scheme (Appeals) Regulations 2005 in order to make provision for the internal review and appeal of certain decisions relating to surviving dependants and to make provision for the representation of children aged under 18.

Part 5 amends the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 to omit the transitional provisions.

Part 6 makes certain transitional provisions relating to reporting requirements and payments to those already receiving certain payments under the FAS. The provisions carry forward the provisions omitted from the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008.

Before making these Regulations the Secretary of State consulted such persons as he considers appropriate.

An impact assessment has not been published for this instrument as it has only a negligible impact on business, charities and voluntary bodies.

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