The Financial Assistance Scheme Regulations 2005

PART 5 U.K. ANNUAL AND INITIAL PAYMENTS

Annual payments U.K.

17.— [F1 (1) [F2 Schedules 2, 3 and 4 make] provision for the determination of the amount of annual payments to be paid to, or in respect of, qualifying members of qualifying pension schemes including provision for a cap to be imposed on such amounts.]

(2) Except where paragraph (3)[F3 , (3A) or (3C) or regulation 17C] applies [F4 or where the qualifying member is receiving an ill health payment under regulation 17A(1) or an interim ill health payment under regulation 17B(2)], a qualifying member of a qualifying pension scheme shall be entitled to an annual payment F5 ... from—

(a) 14^th May 2004; or

(b) the day on which the qualifying member attains [F6 normal retirement age],

whichever is the later.

(3) [F7 Except where the qualifying member is receiving [F8 a payment under paragraph (3C) or] an ill health payment under regulation 17A(1) or an interim ill health payment under regulation 17B(2) [F9 or an annual payment under regulation 17C],] where the scheme manager is satisfied that a qualifying member is terminally ill F10 ..., that member shall be entitled to an annual payment F5 ... from the day on which the scheme manager is first notified that that member may be terminally ill.

[F11 (3A) Where a person is regarded as a qualifying member under regulation 15(5)—

(a) that member shall be entitled to an annual payment F5 ... from—

(i) 14^th May 2004; or

(ii) the date on which he became entitled to a present payment from the qualifying pension scheme;

whichever is the later; and

(b) F12 ... instalments of the annual payment which would have been payable to that member shall cease to be payable from the date on which that member would have ceased to be entitled to the payment referred to in regulation 15(5)(a) in accordance with the rules of the qualifying pension scheme.

(3B) Where the date referred to in paragraph (3A)(b) cannot be determined from the rules of the qualifying pension scheme, the date on which annual payments shall cease to be payable shall be such date as the scheme manager shall determine having regard to the rules of that scheme and to such other information as [F13 it] considers relevant.]

[F14 (3C) Except where regulation 17C applies, a qualifying member shall be entitled to an annual payment F5 ... where—

(a) that member makes a written request for such a payment;

(b) the member is—

(i) not receiving any payments under these Regulations; or

(ii) receiving only payments for a survivor by virtue of paragraph (4), regulation 17A(3), 17B(2)(b) or 18(4); and

(c) the scheme manager is satisfied that the member meets the conditions in paragraph (3D).

(3D) The conditions in this paragraph are that the qualifying member—

(a) has attained the age of 55;

(b) suffers from a progressive disease and as a consequence—

(i) cannot reasonably be expected to die within six months; and

(ii) can reasonably be expected to die within five years;

(c) is unable to work due to ill health and is likely to continue to be so unable to work until normal retirement age; and

(d) is not regarded as a qualifying member by virtue of regulation 15(5).

(3E) The date from which a qualifying member is entitled to an annual payment under paragraph (3C) is the date on which the scheme manager receives the written request mentioned in paragraph (3C)(a).]

(4) [F15 Except where regulation 17A(3) applies [F16 and subject to paragraph (4C)],] a survivor of a qualifying member of a qualifying pension scheme shall be entitled to an annual payment F5 ... from—

(a) 14^th May 2004; or

(b) the day after the day on which that qualifying member died,

whichever is the later.

[F17 (4A) Except where regulation 17A(3) applies and subject to paragraph (4C), a surviving dependant of a qualifying member of a qualifying pension scheme shall be entitled to an annual payment F5 ... from—

(a) 14th May 2004;

(b) the day after the day on which that qualifying member died; or

(c) where a surviving dependant is an unborn child on the day on which the qualifying member died, the day on which that surviving dependant is born,

whichever is the latest.

(4B) An annual payment payable to a surviving dependant under paragraph (4A) shall continue, subject to paragraph (5B), until the surviving dependant—

(a) where neither sub-paragraph (b) nor (c) applies, attains the age of 18;

(b) where the surviving dependant is attending a qualifying course—

(i) attains the age of 23; or

(ii) leaves the qualifying course,

whichever is the earlier; or

(c) where the surviving dependant is incapable of engaging in full time paid employment due to having a disability within the meaning of the Disability Discrimination Act 1995, attains the age of 23.

(4C) A survivor or surviving dependant of a person who is regarded as a qualifying member under regulation 15(5) is not entitled to an annual payment as a survivor or surviving dependant of that qualifying member.

(4D) Where an annual payment ceases to be payable to a surviving dependant as a result of paragraph (4B)(a) or (b)(ii) and the surviving dependant subsequently—

(a) attends a qualifying course; or

(b) becomes incapable of engaging in full time paid employment due to having a disability within the meaning of the Disability Discrimination Act 1995,

before attaining the age of 23, that surviving dependant shall be entitled to an annual payment F5 ... from the day on which the scheme manager is satisfied that the surviving dependant satisfies sub-paragraph (a) or (b) until a day determined in accordance with paragraph (4B).]

(5) The year in respect of which the annual payment is to be made shall be the year starting on the day on which [F18 an instalment] of the annual payment or, as the case may be, an initial payment, is first payable to a beneficiary by virtue of regulation 19 and in respect of subsequent years, on each anniversary of that day.

[F19 (5A) In determining the amount of annual payment that is payable to, or in respect of, a beneficiary [F20 entitled to an annual payment in accordance with Schedule 2] for any previous year or years (“arrears payable”)—

(a) the total of all F21 ... instalments of an initial payment that have been made to, or in respect of, the beneficiary for any previous year or years is to be deducted from the amount of arrears payable to that beneficiary; and

(b) if the total of all such F21 ... instalments is greater than that amount of arrears payable—

(i) the amount to be paid in respect of arrears payable is nil, and

(ii) the difference between that total and the amount of arrears payable is recoverable from the beneficiary in accordance with regulation 7 of the FAS Information and Payments Regulations (recovery of overpayments).]

[F22 (5B) Where a beneficiary dies or otherwise ceases to be entitled to an annual payment—

(a) subject to sub-paragraph (b), any further instalments of an annual payment that would have been payable to that beneficiary, in respect of that year, cease to be payable;

(b) any instalment of an annual payment which is payable in respect of a period which includes the day on which the beneficiary has died or otherwise ceased to be entitled to an annual payment shall be payable.]

(6) [F23 Subject to [F24 paragraphs (3A)(b) [F25 and (5B), regulation 17C(8) and paragraphs 2A and 4A of Schedule 2]], annual] payments which are payable to a [F26 qualifying member or survivor] under this Part shall continue for life.

[F27 (7) Paragraphs 7 and 8 of Schedule 2 provide for the circumstances in which an annual payment is not payable under this Part.]

[F28 (8) Subject to paragraphs (16) and (17), and until such time, if any, as regulation 17E applies, where a beneficiary is entitled to an annual payment in accordance with this regulation, that annual payment shall be determined in accordance with—

(a) Schedule 2, where none of sub-paragraphs (b) to (k) nor paragraph (16) or (17) applies;

(b) Schedule 3, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a qualifying member who was not receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(iii) the sum of—

(aa) the revalued notional pension in relation to the qualifying member; and

(bb) the total amount of any annual increases which the scheme manager considers could have been paid from the relevant date until the day on which the transfer notice is given, taking into account the determination under regulation 27(1)(d) and the revaluation amount determined in accordance with paragraph (11),

is higher than the amount of the annual payment to which that qualifying member would be entitled in accordance with Schedule 2 if that Schedule applied and sub-paragraphs (3A) to (3G) of paragraph 2 of that Schedule were omitted;

(c) Schedule 3, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant; and

(iii) the qualifying member in respect of the beneficiary was entitled to an annual payment in accordance with Schedule 3 immediately before the death of the member;

(d) Schedule 3, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) the qualifying member in respect of the beneficiary was not receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010;

(iv) the qualifying member died—

(aa) before becoming entitled to an annual payment; and

(bb) on or after the calculation date; and

(v) the sum of—

(aa) one half of the revalued notional pension in relation to the qualifying member;

(bb) one half of the total amount of any annual increases which the scheme manager considers could have been paid from the relevant date until the date on which the qualifying member died, taking into account the determination under regulation 27(1)(d) and the revaluation amount determined in accordance with paragraph (11); and

(cc) the total amount of any annual increases which the scheme manager considers could have been paid to a survivor from the day after the day on which the qualifying member died until the day on which the transfer notice is given, taking into account the determination under regulation 27(1)(d) and the revaluation amount determined in accordance with paragraph (11),

is higher than the amount of the annual payment to which a survivor would be entitled in accordance with Schedule 2 if that Schedule applied and paragraphs 2(3A) to (3G) and 5(6A) of that Schedule were omitted;

(e) Schedule 3, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) the qualifying member in respect of the beneficiary was not receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010;

(iv) the qualifying member died—

(aa) after becoming entitled to an annual payment; and

(bb) on or after the calculation date,

but before the day on which the transfer notice was given;

(v) the sum of—

(aa) one half of the revalued notional pension in relation to the qualifying member;

(bb) one half of the total amount of any annual increases which the scheme manager considers could have been paid from the relevant date until the date on which the qualifying member died, taking into account the determination under regulation 27(1)(d) and the revaluation amount determined in accordance with paragraph (11); and

(cc) the total amount of any annual increases which the scheme manager considers could have been paid to a survivor from the day after the day on which the qualifying member died until day on which the transfer notice is given, taking into account the determination under regulation 27(1)(d) and the revaluation amount determined in accordance with paragraph (11),

is higher than the amount of the annual payment to which a survivor would be entitled in accordance with Schedule 2 if that Schedule applied and paragraphs 2(3A) to (3G) and 5(6A) of that Schedule were omitted;

(f) Schedule 3, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) neither the qualifying member in respect of the beneficiary nor the beneficiary was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010;

(iv) the qualifying member died before the calculation date; and

(v) the sum of—

(aa) the survivor notional pension determined in respect of the beneficiary; and

(bb) the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the survivor notional pension from the relevant date until the day on which the transfer notice is given,

is higher than the amount of the annual payment to which the beneficiary would be entitled in accordance with Schedule 2 if that Schedule applied and paragraph 2(3A) to (3G) of that Schedule were omitted;

(g) Schedule 4, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a qualifying member who was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(iii) the sum of—

(aa) the notional pension in relation to that qualifying member; and

(bb) the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the notional pension from the relevant date until the day on which the transfer notice is given,

is higher than the amount of the annual payment to which the beneficiary would be entitled in accordance with Schedule 2 if that Schedule applied and paragraph 2(3A) to (3E) of that Schedule were omitted;

(h) Schedule 4, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) the qualifying member in respect of the beneficiary—

(aa) was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(bb) died before the calculation date; and

(iv) the sum of—

(aa) the survivor notional pension determined in respect of the beneficiary; and

(bb) the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the survivor notional pension from the relevant date until the day on which the transfer notice is given,

is higher than the amount of the annual payment to which the beneficiary would be entitled in accordance with Schedule 2 if that Schedule applied and paragraph 2(3A) to (3E) of that Schedule were omitted;

(i) Schedule 4, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant who was receiving a present payment from the qualifying pension scheme under scheme rules as a result of the death of a qualifying member before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(iii) the sum of—

(aa) the survivor notional pension determined in respect of the beneficiary; and

(bb) the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the survivor notional pension from the relevant date until the day on which the transfer notice is given,

is higher than the amount of the annual payment to which the beneficiary would be entitled in accordance with Schedule 2 if that Schedule applied and paragraph 2(3A) to (3E) of that Schedule were omitted;

(j) Schedule 4, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) the qualifying member in respect of the beneficiary—

(aa) was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(bb) died on or after the calculation date, but before the day on which the transfer notice was given; and

(iv) the sum of—

(aa) the proportion of the notional pension which relates to the beneficiary;

(bb) the relevant proportion of the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the notional pension from the relevant date until the date on which the qualifying member died; and

(cc) the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the relevant proportion of the notional pension from the day after the qualifying member died until the day on which the transfer notice is given,

is higher than the amount of the annual payment to which the beneficiary would be entitled in accordance with Schedule 2 if that Schedule applied and paragraph 2(3A) to (3E) of that Schedule were omitted; or

(k) Schedule 4, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) the qualifying member in respect of the beneficiary—

(aa) was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(bb) died on or after the day on which the transfer notice was given; and

(iv) the sum of—

(aa) the proportion of the notional pension which relates to the beneficiary;

(bb) the relevant proportion of the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the notional pension from the relevant date until the day on which the transfer notice was given; and

(cc) the relevant proportion of the total amount of any annual increases to which the qualifying member was entitled on the day on which the qualifying member died,

is higher than the amount of the annual payment to which the beneficiary would be entitled in accordance with Schedule 2 if that Schedule applied and paragraph 2(3A) to (3E) of that Schedule were omitted.

(9) For the purposes of paragraphs (8), (16) and (17)—

(a) a qualifying member is treated as receiving a present payment from a pension scheme before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010, notwithstanding that no payment has been received, if, prior to the coming into force of those Regulations—

(i) the qualifying member was entitled to a payment under the scheme rules; and

(ii) the trustees or managers of the scheme received confirmation from the qualifying member that payment should commence; and

(iii) the qualifying member’s entitlement became payable, as a result of paragraphs (i) and (ii) being satisfied.

(b) a survivor or surviving dependant is treated as receiving a present payment from a pension scheme before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010, notwithstanding that no payment has been received, if, prior to the coming into force of those Regulations, the beneficiary was entitled to ongoing payments as a result of the death of the qualifying member.

(10) In paragraph (8)(b)(iii), (d)(v) and (e)(v), “the revalued notional pension” means the aggregate of—

(a) the notional pension; and

(b) the revaluation amount for the period—

(i) beginning on the calculation date; and

(ii) ending on the earliest of—

(aa) the day on which the beneficiary becomes entitled to an annual payment;

(bb) the day on which the beneficiary began to receive a present payment from the scheme; F29 ...

(cc) the day on which the qualifying member died;[F30 or]

[F30 (dd) 30th March 2011, provided that the calculation date falls before 30th March 2011; and]

[F30 (c) in any case where the calculation date falls on or before 30th March 2011 and the day determined in accordance with paragraphs (i) to (iii) falls after 30th March 2011, the revaluation amount for the period beginning on 31st March 2011 and ending on—

(i) the day on which the beneficiary became entitled to an annual payment;

(ii) the day on which the beneficiary began to receive a present payment from the scheme; or

(iii) the day on which the qualifying member died,

whichever is the earliest.]

(11) The revaluation amount for [F31 the period referred to in paragraph (10)(b), or, where sub-paragraph (c) applies, the periods referred to in paragraph (10)(b) and (c)] is—

(a) where—

[F32 (i) the period—

(aa) referred to in paragraph (10)(b) where sub-paragraph (c) does not apply; or

(bb) covered by both periods referred to in paragraph (10)(b) and (c) where sub-paragraph (c) applies,

is less than one month; or]

(ii) the qualifying member became entitled to an annual payment or began to receive present payment from the scheme prior to the calculation date,

nil; and

(b) in any other case, the revaluation percentage of the notional pension.

(12) In paragraph (11), “the revaluation percentage” means the lesser of—

(a) the percentage increase in the general level of prices F33 ... during the revaluation period [F34 or periods] determined in accordance with paragraph (10); and

(b) the maximum revaluation rate.

[F35 (13) Subject to paragraph (13A), the method for determining the percentage increase in the general level of prices during the revaluation periods determined in accordance with paragraph (10)(b) and (c) is—

where—

(a)

A is the general level of prices for the month which falls two months before the month in which the last day of the revaluation period falls; and

(b)

B is the general level of prices for the month which falls two months before the month in which the first day of the revaluation period falls.]

[F36 (13A) Where the entire period determined in accordance with paragraph (10)(b) falls before 31st March 2011, the method for determining the percentage increase in the general level of prices during that period is—

where—

(a)

A is the level of the retail prices index for the month which falls two months before the month in which the last day of the revaluation period falls; and

(b)

B is the level of the retail prices index for the month which falls two months before the month in which the calculation date falls.]

(14) In paragraph (12)(b), “the maximum revaluation rate” is—

[F37 (a) if the period covered by the period or periods mentioned in paragraph (12)(a) is a period of 12 months, 5%; or]

(b) in any other case, the percentage that would be the percentage mentioned in paragraph (12)(a) had the general level of prices[F38 , whether determined in accordance with paragraph (13) or (13A),] increased at the rate of 5% compound per annum during that period.

(15) In paragraph (8), “relevant date” means—

(a) where the beneficiary began to receive a payment from the scheme after the calculation date and prior to becoming entitled to an annual payment under these Regulations, the date on which the beneficiary began to receive a present payment from the scheme;

(b) where the beneficiary is a qualifying member to whom sub-paragraph (a) does not apply, but to whom paragraph (3) or (3C) applies, the date on which the qualifying member became entitled to an annual payment under that paragraph; and

(c) in all other cases, the date from which the notional pension or survivor notional pension could have been payable as determined in accordance with regulation 27(3) and (4).

(16) Where a qualifying member entitled to an annual payment in accordance with this regulation is a qualifying member to whom regulation 17H applied, the annual payment shall be determined in accordance with—

(a) Schedule 3, where—

(i) the qualifying member was not receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(ii) the payment which was payable to the qualifying member under Schedule 7, taking into account any reduction made to that payment under paragraph 1(2) or (5) of that Schedule, immediately before the qualifying member became entitled to an annual payment under this regulation is higher than the amount of the annual payment to which the qualifying member would be entitled in accordance with Schedule 2 if that Schedule applied; and

(b) Schedule 4, where—

(i) the qualifying member was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(ii) the payment which was payable to the qualifying member under Schedule 7, taking into account any reduction made to that payment under paragraph 1(2) or (5) of that Schedule, immediately before the qualifying member became entitled to an annual payment under this regulation is higher than the amount of the annual payment to which the member would be entitled in accordance with Schedule 2 if that Schedule applied.

(17) Where a beneficiary is entitled to an annual payment in accordance with this regulation because they are the survivor or surviving dependant of a qualifying member to whom, immediately before the qualifying member’s death, regulation 17H applied, the annual payment shall be determined in accordance with—

(a) Schedule 3, where—

(i) the qualifying member was not receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(ii) one half of the payment which was payable to the qualifying member under Schedule 7, disregarding any reduction made to that payment under paragraph 1(2) or (5) of that Schedule, on the day on which the qualifying member died is higher than the amount of the annual payment to which a survivor would be entitled in accordance with Schedule 2 if that Schedule applied and paragraph 5(6A) of that Schedule were omitted; and

(b) Schedule 4, where—

(i) the qualifying member was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(ii) the relevant proportion of the payment which was payable to the qualifying member in accordance with Schedule 7, disregarding any reduction made to that payment under paragraph 1(2) or (5) of that Schedule, on the day on which the qualifying member died is higher than the amount of the annual payment to which the beneficiary would be entitled in accordance with Schedule 2 if that Schedule applied.

(18) In paragraph (8) and paragraph (17), “relevant proportion” means the proportion of the notional pension which relates to the beneficiary.]

Textual Amendments

F1 Reg. 17(1) substituted (19.12.2007) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/3581), regs. 1(1), 6(1)

F2 Words in reg. 17(1) substituted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 8(b)

F3 Words in reg. 17(2) substituted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 4(2)

F4 Words in reg. 17(2) inserted (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 9(a)

F5 Words in reg. 17 omitted (2.4.2010) by virtue of The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 8(a)

F6 Words in reg. 17(2) substituted (4.6.2008) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432), regs. 1, 6(1)(a)(ii) (with reg. 8)

F7 Words in reg. 17(3) inserted (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 9(b)

F8 Words in reg. 17(3) inserted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 4(3)(a)

F9 Words in reg. 17(3) inserted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 4(3)(b)

F10 Words in reg. 17(3) omitted (24.11.2005) by virtue of The Financial Assistance Scheme (Modifications and Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3256), regs. 1(1), 4(3)(a)

F11 Reg. 17(3A)(3B) inserted (4.6.2008) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432), regs. 1, 6(1)(b) (with reg. 8)

F12 Word in reg. 17(3A)(b) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(a) (with reg. 37)

F13 Word in reg. 17(3B) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 7(1)(a) (with reg. 37)

F14 Reg. 17(3C)-(3E) inserted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 4(4)

F15 Words in reg. 17(4) inserted (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 9(c)

F16 Words in reg. 17(4) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 12(a) (with reg. 37)

F17 Reg. 17(4A)-(4D) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 12(b) (with reg. 37)

F18 Words in reg. 17(5) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(3)(a) (with reg. 37)

F19 Reg. 17(5A) substituted (16.12.2006) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/3370), regs. 1(1), 6(1)

F20 Words in reg. 17(5A) inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 8(c)

F21 Word in reg. 17(5A)(a)(b) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(a) (with reg. 37)

F22 Reg. 17(5B) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 12(c) (with reg. 37)

F23 Words in reg. 17(6) substituted (24.11.2005) by The Financial Assistance Scheme (Modifications and Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3256), regs. 1(1), 4(3)(c)

F24 Words in reg. 17(6) substituted (4.6.2008) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432), regs. 1, 6(1)(c) (with reg. 8)

F25 Words in reg. 17(6) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 12(d)(i) (with reg. 37)

F26 Words in reg. 17(6) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 12(d)(ii) (with reg. 37)

F27 Reg. 17(7) added (24.11.2005) by The Financial Assistance Scheme (Modifications and Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3256), regs. 1(1), 4(3)(d)

F28 Reg. 17(8)-(18) added (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 8(d)

F29 Word in reg. 17(10)(b)(ii)(bb) omitted (31.3.2011) by virtue of The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(a)(i)

F30 Reg. 17(10)(b)(ii)(dd)(c) and word inserted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(a)(ii)

F31 Words in reg. 17(11) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(b)(i)

F32 Reg. 17(11)(a)(i) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(b)(ii)

F33 Words in reg. 17(12)(a) omitted (31.3.2011) by virtue of The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(c)(i)

F34 Words in reg. 17(12)(a) inserted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(c)(ii)

F35 Reg. 17(13) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(d)

F36 Reg. 17(13A) inserted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(e)

F37 Reg. 17(14)(a) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(f)(i)

F38 Words in reg. 17(14)(b) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 4(f)(ii)

[F39 Ill health payments U.K.

17A.— (1) Except where the qualifying member is entitled to an annual payment under regulation 17(2)[F40 , (3) or (3C) or 17C], where the scheme manager is satisfied that a qualifying member is unable to work due to ill health and is likely to continue to be so unable to work until normal retirement age, that member shall be entitled to a payment (“an ill health payment”) F41 ... from—

(a) the day on which the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 come into force;

(b) subject to paragraph (2), the day on which the scheme manager is first notified that that member is unable to work due to ill health and is likely to continue to be so unable to work until normal retirement age; or

(c) the day on which the member attains the age which is 5 years less than normal retirement age,

whichever is the latest.

(2) Where the scheme manager—

(a) has been notified that a qualifying member is unable to work due to ill health and is likely to continue to be so unable to work until normal retirement age;

(b) is not so satisfied or the qualifying member withdraws the notification; and

(c) receives a further notification in relation to that qualifying member and is then so satisfied,

the day which is the day for the purposes of paragraph (1)(b) is the day of the later notification.

(3) Where—

(a) a qualifying member of a qualifying pension scheme has died and leaves a survivor [F42 or a surviving dependant]; and

(b) that qualifying member was receiving an ill health payment or an interim ill health payment when he died,

the survivor [F43 and any surviving dependants] of that qualifying member shall be entitled to an ill health payment from the day after the day on which that qualifying member died.

(4) An ill health payment shall be made in respect of a year starting on the day on which [F44 an instalment] of the ill health payment or, as the case may be, an interim ill health payment, is first payable to a beneficiary by virtue of regulation 19 and in respect of subsequent years, on each anniversary of that day.

(5) In determining the amount of an ill health payment that is payable to, or in respect of, a beneficiary [F45 entitled to an ill health payment in accordance with Schedule 2A] for any previous year or years (“arrears payable”)—

(a) the total of all F46 ... instalments of an interim ill health payment that have been made to, or in respect of, the beneficiary for any previous year or years is to be deducted from the amount of arrears payable to that beneficiary; and

(b) if the total of all such F46 ... instalments is greater than that amount of arrears payable—

(i) the amount to be paid in respect of arrears payable is nil, and

(ii) the difference between that total and the amount of arrears payable is recoverable from the member in accordance with regulation 7 of the FAS Information and Payments Regulations (recovery of overpayments).

(6) Subject to paragraph (7)[F47 , regulation 17C(7) and paragraph 10 of Schedule 2A], ill health payments which are payable to a [F48 qualifying member or survivor] under this regulation shall continue for life.

[F49 (6A) Ill health payments which are payable to a surviving dependant under this regulation shall continue, subject to paragraph (7), until the surviving dependant—

(a) where neither sub-paragraph (b) nor (c) applies, attains the age of 18;

(b) where the surviving dependant is attending a qualifying course,—

(i) attains the age of 23; or

(ii) leaves the qualifying course

whichever is the earlier; or

(c) where the surviving dependant is incapable of engaging in full time paid employment due to having a disability within the meaning of the Disability Discrimination Act 1995, attains the age of 23.

(6B) Where an ill health payment ceases to be payable to a surviving dependant as a result of paragraph (6A)(a) or (b)(ii) and the surviving dependant subsequently—

(a) attends a qualifying course; or

(b) becomes incapable of engaging in full time paid employment due to having a disability within the meaning of the Disability Discrimination Act 1995,

before attaining the age of 23, that surviving dependant shall be entitled to an ill health payment F50 ... from the day on which the scheme manager is satisfied that the surviving dependant satisfies sub-paragraph (a) or (b) until a day determined in accordance with paragraph (6A).]

[F51 (7) Where a beneficiary dies or otherwise ceases to be entitled to an ill health payment—

(a) subject to sub-paragraph (b), any further instalments of an ill health payment that would have been payable to that beneficiary, in respect of that year, cease to be payable;

(b) any instalment of an ill health payment which is payable in respect of a period which includes the day on which the beneficiary has died or otherwise ceased to be entitled to an ill health payment shall be payable.]

[F52 (8) Subject to paragraph (16), and until such time, if any, as regulation 17F applies, where a beneficiary is entitled to an ill health payment in accordance with this regulation, that ill health payment shall be determined in accordance with—

(a) Schedule 2A, where none of sub-paragraphs (b) to (i) nor paragraph (16) applies;

(b) Schedule 5, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a qualifying member who was not receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(iii) the sum of—

(aa) the product of C multiplied by the revalued notional pension in relation to the qualifying member; and

(bb) the total amount of any annual increases which the scheme manager considers could have been paid from the relevant date until the day on which the transfer notice is given, taking into account the determination under regulation 27(1)(d) and the revaluation amount determined in accordance with paragraph (11),

is higher than the amount of the ill health payment to which that qualifying member would be entitled in accordance with Schedule 2A if that Schedule applied and sub-paragraphs (3A) to (3G) of paragraph 2 of Schedule 2 were omitted;

(c) Schedule 5, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant; and

(iii) the qualifying member in respect of the beneficiary was entitled to an ill health payment in accordance with Schedule 5 immediately before the death of the member;

(d) Schedule 5, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) the qualifying member in respect of the beneficiary—

(aa) was not receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010;

(bb) was entitled to an ill health payment immediately before the death of the qualifying member; and

(cc) died on or after the calculation date and before the day on which the transfer notice was given; and

(iv) the sum of—

(aa) the product of C multiplied by one half of the revalued notional pension in relation to the qualifying member;

(bb) one half of the total amount of any annual increases which the scheme manager considers could have been paid from the relevant date until the date on which the qualifying member died, taking into account the determination under regulation 27(1)(d) and the revaluation amount determined in accordance with paragraph (11); and

(cc) the total amount of any annual increases which the scheme manager considers could have been paid to a survivor from the day after the day on which the qualifying member died until the day on which the transfer notice is given, taking into account the determination under regulation 27(1)(d) and the revaluation amount determined in accordance with paragraph (11),

is higher than the amount of the ill health payment to which a survivor would be entitled in accordance with Schedule 2A if that Schedule applied and paragraph 2(2A) of that Schedule and paragraph 2(3A) to (3G) of Schedule 2 were omitted;

(e) Schedule 5, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) neither the beneficiary nor the qualifying member in respect of the beneficiary was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010;

(iv) the beneficiary was entitled to an ill health payment immediately before the calculation date; and

(v) the sum of—

(aa) the survivor notional pension determined in respect of the beneficiary; and

(bb) the total amount of annual increases which the scheme manager has determined under regulation 27 could be paid on the survivor notional pension from the relevant date until the day on which the transfer notice is given,

is higher than the amount of the ill health payment to which the beneficiary would be entitled in accordance with Schedule 2A if that Schedule applied and sub-paragraphs (3A) to (3G) of paragraph 2 of Schedule 2 were omitted;

(f) Schedule 6, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a qualifying member who was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(iii) the sum of—

(aa) the notional pension in relation to that qualifying member; and

(bb) the total amount of annual increases which the scheme manager has determined under regulation 27 could be paid on the notional pension from the relevant date until the day on which the transfer notice is given,

is higher than the amount of the ill health payment to which the qualifying member would be entitled in accordance with Schedule 2A if that Schedule applied and paragraph 2(3A) to (3E) of Schedule 2 were omitted;

(g) Schedule 6, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) either—

(aa) the beneficiary was receiving a present payment from the qualifying pension scheme under scheme rules as a result of the death of a qualifying member; or

(bb) the qualifying member in respect of the beneficiary was receiving a present payment from the qualifying pension scheme under scheme rules,

before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010;

(iv) the beneficiary was entitled to an ill health payment immediately before the calculation date; and

(v) the sum of—

(aa) the survivor notional pension determined in respect of the beneficiary; and

(bb) the total amount of annual increases which the scheme manager has determined under regulation 27 could be paid on the survivor notional pension from the relevant date until the day on which the transfer notice is given,

is higher than the amount of the ill health payment to which the beneficiary would be entitled in accordance with Schedule 2A if that Schedule applied and paragraph 2(3A) to (3E) of Schedule 2 were omitted;

(h) Schedule 6, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) the qualifying member in respect of the beneficiary—

(aa) was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010;

(bb) died on or after the calculation date, but before the day on which the transfer notice was given; and

(cc) was entitled to an ill health payment when the qualifying member died; and

(iv) the sum of—

(aa) the proportion of the notional pension which relates to the beneficiary;

(bb) the relevant proportion of the total amount of annual increases which the scheme manager has determined under regulation 27 could be paid on the notional pension from the relevant date until the date on which the qualifying member died; and

(cc) the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the relevant proportion of the notional pension from the day after the day on which the qualifying member died until the day on which the transfer notice is given,

is higher than the amount of the ill health payment to which the beneficiary would be entitled in accordance with Schedule 2A if that Schedule applied and paragraph 2(3A) to (3E) of Schedule 2 were omitted; and

(i) Schedule 6, where—

(i) a transfer notice has been given in respect of the qualifying pension scheme;

(ii) the beneficiary is a survivor or surviving dependant;

(iii) the qualifying member in respect of the beneficiary—

(aa) was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010;

(bb) died on or after the day on which the transfer notice was given; and

(cc) was entitled to an ill health payment when the qualifying member died; and

(iv) the sum of—

(aa) the proportion of the notional pension which relates to the beneficiary;

(bb) the relevant proportion of the total amount of annual increases which the scheme manager has determined under regulation 27 could be paid on the notional pension from the relevant date until the day on which the transfer notice was given; and

(cc) the relevant proportion of the total amount of any annual increases to which the qualifying member was entitled on the day on which the qualifying member died,

is higher than the amount of the ill health payment to which the beneficiary would be entitled in accordance with Schedule 2A if that Schedule applied and paragraph 2(3A) to (3E) of Schedule 2 were omitted.]

[F52 (9) For the purposes of paragraphs (8) and (16)—

(a) a qualifying member is treated as receiving a present payment from a pension scheme before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010, notwithstanding that no payment has been received, if, prior to the coming into force of those Regulations—

(i) the qualifying member was entitled to a payment under the scheme rules;

(ii) the trustees or managers of the scheme received confirmation from the qualifying member that payment should commence; and

(iii) the qualifying member’s entitlement became payable, as a result of paragraphs (i) and (ii) being satisfied; and

(b) a survivor or surviving dependant is treated as receiving a present payment from a pension scheme before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010, notwithstanding that no payment has been received, if, prior to the coming into force of those Regulations, the beneficiary was entitled to ongoing payments as a result of the death of the qualifying member.

(10) In paragraph (8)(b)(iii) and (d)(iv)—

“the revalued notional pension” means the aggregate of—

(a)

the notional pension; and

(b)

the revaluation amount for the period—

(i)

beginning on the calculation date; and

(ii)

ending on the earlier of—

(aa)

the day on which the qualifying member became entitled to an ill health payment; and

(bb)

the day on which the qualifying member began to receive a present payment from the scheme; and

(cc)

[F53 30th March 2011, provided that the calculation date falls before 30th March 2011; and]

(c)

[F53 in any case where the calculation date falls on or before 30th March 2011 and the day on which the beneficiary became entitled to an ill health payment or began to receive a present payment from the scheme falls after 30th March 2011, the revaluation amount for the period beginning on 31st March 2011 and ending on the day on which the beneficiary became entitled to an ill health payment or began to receive a present payment from the scheme; and]

“C” means—

(a)

1, where the qualifying member was—

(i)

entitled to an ill health payment on the calculation date; or

(ii)

receiving a present payment from the scheme on the calculation date; and

(b)

the actuarial factor to be applied in respect of the beneficiary in accordance with Schedule 5, where the qualifying member was not receiving a present payment from the scheme on the calculation date and became entitled to an ill health payment after the calculation date.

(11) The revaluation amount for the period[F54 , or, where paragraph (10)(c) applies, the periods,] referred to in the definition of “the revalued notional pension” in paragraph (10) is—

(a) where—

[F55 (i) the period—

(aa) referred to in paragraph (10)(b) where sub-paragraph (c) does not apply; or

(bb) covered by both periods referred to in paragraph (10)(b) and (c) where sub-paragraph (c) applies,

is less than one month; or]

(ii) the qualifying member became entitled to an ill health payment or began to receive a present payment from the scheme prior to the calculation date,

nil; or

(b) in any other case, the revaluation percentage of the notional pension.

(12) In paragraph (11), “the revaluation percentage” means the lesser of—

(a) the percentage increase in the general level of prices F56 ... during the revaluation period [F57 or periods] determined in accordance with paragraph (10); and

(b) the maximum revaluation rate.

[F58 (13) Subject to paragraph (13A), the method for determining the percentage increase in the general level of prices during the revaluation periods determined in accordance with sub-paragraphs (b) and (c) of the definition of “the revalued notional pension” in paragraph (10) is—

where—

(a)

A is the general level of prices for the month which falls two months before the month in which the last day of the revaluation period falls; and

(b)

B is the general level of prices for the month which falls two months before the month in which the first day of the revaluation period falls.]

[F59 (13A) Where the entire period determined in accordance with sub-paragraph (b) of the definition of “the revalued notional pension” in paragraph (10) falls before 31st March 2011, the method for determining the percentage increase in the general level of prices during that period is—

where—

(a)

A is the level of the retail prices index for the month which falls two months before the month in which the last day of the revaluation period falls; and

(b)

B is the level of the retail prices index for the month which falls two months before the month in which the calculation date falls.]

(14) In paragraph (12)(b), “the maximum revaluation rate” is—

[F60 (a) if the period covered by the period or periods mentioned in paragraph (12)(a) is a period of 12 months, 5%; or]

(b) in any other case, the percentage that would be the percentage mentioned in paragraph (12)(a) had the general level of prices[F61 ,whether determined in accordance with paragraph (13) or (13A),] increased at the rate of 5% compound per annum during that period.

(15) In paragraph (8), “relevant date” means—

(a) where the beneficiary began to receive a payment from the scheme after the calculation date and prior to becoming entitled to an ill health payment under these Regulations, the date on which the beneficiary began to receive a present payment from the scheme;

(b) where the beneficiary became entitled to an ill health payment after the calculation date and prior to receiving a payment from the scheme, the date on which the beneficiary became so entitled; and

(c) in all other cases, the date from which the notional pension or survivor notional pension could have been payable as determined in accordance with regulation 27(3) and (4).

(16) Where a qualifying member entitled to an ill health payment in accordance with this regulation is a qualifying member to whom regulation 17H applied, the ill health payment shall be determined in accordance with—

(a) Schedule 5, where—

(i) the qualifying member was not receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(ii) the payment which was payable to the qualifying member under Schedule 7, taking into account any reduction made to that payment under paragraph 1(2) or (5) of that Schedule, immediately before the qualifying member became entitled to an ill health payment under this regulation is higher than the amount of the ill health payment to which the qualifying member would be entitled in accordance with Schedule 2A if that Schedule applied; and

(b) Schedule 6, where—

(i) the qualifying member was receiving a present payment from the qualifying pension scheme under scheme rules before the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010; and

(ii) the payment which was payable to the qualifying member under Schedule 7, taking into account any reduction made to that payment under paragraph 1(2) or (5) of that Schedule, immediately before the qualifying member became entitled to an ill health payment under this regulation is higher than the amount of the ill health payment to which the qualifying member would be entitled in accordance with Schedule 2A if that Schedule applied.]

Textual Amendments

F39 Reg. 17A - Reg. 17B inserted (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 10

F40 Words in reg. 17A(1) substituted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 5(2)

F41 Words in reg. 17A(1) omitted (2.4.2010) by virtue of The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 9(a)

F42 Words in reg. 17A(3) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 13(a)(i) (with reg. 37)

F43 Words in reg. 17A(3) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 13(a)(ii) (with reg. 37)

F44 Words in reg. 17A(4) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(3)(b) (with reg. 37)

F45 Words in reg. 17A(5) inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 9(b)

F46 Word in reg. 17A(5)(a)(b) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(b) (with reg. 37)

F47 Words in reg. 17A(6) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 13(b)(i) (with reg. 37)

F48 Words in reg. 17A(6) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 13(b)(ii) (with reg. 37)

F49 Reg. 17A(6A)(6B) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 13(c) (with reg. 37)

F50 Words in reg. 17A(6B) omitted (2.4.2010) by virtue of The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 9(c)

F51 Reg. 17A(7) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 13(d) (with reg. 37)

F52 Regs. 17A(8)-(16) substituted for reg. 17A(8) (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 9(d)

F53 Words in reg. 17A(10) inserted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(a)

F54 Words in reg. 17A(11) inserted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(b)(i)

F55 Words in reg. 17A(11)(a)(i) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(b)(ii)

F56 Words in reg. 17A(12)(a) omitted (31.3.2011) by virtue of The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(c)(i)

F57 Words in reg. 17A(12)(a) inserted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(c)(ii)

F58 Reg. 17A(13) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(d)

F59 Reg. 17A(13A) inserted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(e)

F60 Reg. 17A(14)(a) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(f)(i)

F61 Words in reg. 17A(14)(b) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 5(f)(ii)

[F62 Meaning of “the FAS cap” U.K.

17AA.— (1) This regulation gives the meaning of “the FAS cap” for the purposes of—

(a) Schedule 2 (determination of annual and initial payments); and

(b) Schedule 2A (determination of ill health and interim ill health payments).

(2) In this regulation, “the standard amount” means the appropriate amount given in—

(a) paragraph 7(3) of Schedule 2 in the case of an annual or initial payment; and

(b) paragraph 7(3) of Schedule 2A in the case of an ill health or interim ill health payment.

(3) The FAS cap for or in respect of a person who has 20 or fewer years of pensionable service at the time when the person first becomes entitled to an annual payment or (as the case may be) an ill health payment is the standard amount.

(4) Subject to paragraph (6), the FAS cap for or in respect of a person who has more than 20 years of pensionable service at that time is the sum of—

(a) the standard amount, and

(b) for each whole year of pensionable service that exceeds 20 years of pensionable service, the amount found by multiplying the standard amount by 3%.

(5) If the total amount calculated under paragraph (4)(b) would exceed the standard amount, it is to be treated as being equal to the standard amount.

(6) The FAS cap for the purposes of determining the amount of an initial payment or an interim ill health payment is the standard amount.

(7) In any case where—

(a) the scheme manager cannot determine the length of some or all of a person’s pensionable service under the scheme rules; or

(b) the person has benefits under the rules which are not attributable to a particular period of pensionable service,

the scheme manager must treat the person as having a length of pensionable service as the scheme manager considers appropriate (which is in addition to any other pensionable service the person has for the purposes of this regulation), having regard to the scheme rules and to such other information as the scheme manager considers relevant.

(8) When calculating a person’s pensionable service for the purpose of determining the amount of the FAS cap in relation to a qualifying pension scheme, no account is to be taken of any pensionable service that the person may have under a different pension scheme.

(9) A person who is regarded as a qualifying member under regulation 15(5) (qualifying members) must be treated for the purposes of this regulation as having pensionable service of the same length as the deceased former member (which is in addition to any pensionable service that the person is treated as having under paragraph (7)).

(10) A pension credit member credited with a length of notional pensionable service because of pension credit rights must be treated for the purposes of this regulation as having pensionable service of that length (which is in addition to any pensionable service that the person is treated as having under paragraph (7)).]

Textual Amendments

F62 Reg. 17AA inserted (21.2.2018) by The Financial Assistance Scheme (Increased Cap for Long Service) Regulations 2018 (S.I. 2018/207), regs. 1(1), 2 (with reg. 5)

Interim ill health payments U.K.

17B.— (1) This regulation applies where F63 ...—

(a) the scheme manager has been notified that, and is satisfied that, a qualifying member of [F64 a qualifying pension scheme] is unable to work due to ill health and is likely to continue to be so unable to work until normal retirement age; or

(b) a qualifying member of that scheme—

(i) has died and leaves a survivor [F65 or a surviving dependant]; and

(ii) was receiving an interim ill health payment when he died.

(2) [F66 Except where regulation 17C(8)(b)(i) applies, the scheme manager] may, in [F67 its] discretion, make an interim ill health payment, in anticipation of an ill health payment being payable under this Part and on account of such a payment—

(a) to the qualifying member with effect from—

(i) the day on which the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 come into force;

(ii) subject to paragraph (3), the day on which the scheme manager is first notified that that member is unable to work due to ill health and is likely to continue to be so unable to work until normal retirement age; or

(iii) the day on which the member attains the age which is 5 years less than normal retirement age,

whichever is the latest; or

(b) if the qualifying member has died, to a survivor [F68 and any surviving dependants] of that qualifying member with effect from the day after the day on which that qualifying member died.

(3) Where the scheme manager—

(a) has been notified that a qualifying member is unable to work due to ill health and is likely to continue to be so unable to work until normal retirement age;

(b) is not so satisfied or the qualifying member withdraws the notification; and

(c) receives a further notification in relation to that qualifying member and is then so satisfied,

the day which is the day for the purposes of paragraph (2)(a)(ii) is the day of the later notification.

(4) In exercising [F69 its] discretion under paragraph (2), the scheme manager shall only have regard to—

(a) the amount, if any, of any interim pension that was in payment, is in payment, or is proposed to be paid, from the qualifying pension scheme to the qualifying member; and

(b) any circumstances relating to the scheme which, in the opinion of the scheme manager are relevant to determining whether an interim ill health payment should be made.

(5) Where the trustees or managers have determined the amount of interim pension that would be paid to the qualifying member[F70 , any surviving dependants] or the survivor of that qualifying member, but do not propose to pay that interim pension for administrative reasons, the scheme manager may, in exercising [F69 its] discretion under paragraph (2) and in determining the amount of interim ill health payment under Schedule 2A, deem that member[F71 , any such surviving dependant] or that survivor to be receiving that interim pension, if in the scheme manager’s opinion it is reasonable to do so.

(6) Schedule 2A makes provision for the determination of the amount of interim ill health payments and the circumstances in which an interim ill health payment is not payable.

(7) If the scheme manager determines that an interim ill health payment may be made under paragraph (2), the interim ill health payment is payable—

(a) to a qualifying member from the relevant day mentioned in that paragraph until the day on which the qualifying member—

(i) would have been paid, or is paid, the first F72 ... instalment of an ill health payment in accordance with regulation 19, if an ill health payment were payable, or is payable, to him under this Part; or

(ii) dies,

whichever is the earlier; F73 ...

(b) in respect of a qualifying member who has died, to a survivor of that qualifying member from the day after the day on which that qualifying member died until the day on which his survivor—

(i) would have been paid, or is paid, the first F74 ... instalment of an ill health payment in accordance with regulation 19, if an ill health payment were payable, or is payable, to him under this Part; or

(ii) dies,

whichever is the earlier; [F75 and]

[F75 (c) in respect of a qualifying member who has died, to a surviving dependant of that qualifying member from the day after the day on which that qualifying member died until the day on which the surviving dependant—

(i) would have been paid, or is paid, the first instalment of an ill health payment in accordance with regulation 19, if an ill health payment were payable, or is payable, to that surviving dependant under this Part; or

(ii) dies or otherwise ceases to be entitled to an ill health payment in accordance with regulation 17A,

whichever is the earlier.]

[F76 (8) Where a beneficiary dies or otherwise ceases to be entitled to an ill health payment—

(a) subject to sub-paragraph (b), any further instalments of an interim ill health payment that would have been payable to that beneficiary, in respect of that year, cease to be payable;

(b) any instalment of an interim ill health payment which is payable in respect of a period which includes the day on which the beneficiary has died or otherwise ceased to be entitled to an ill health payment shall be payable.]

(9) The scheme manager may, at any time before the amount of the ill health payment is determined, redetermine the amount of any interim ill health payment paid under paragraph (2) if [F77 it] is satisfied that the amount being paid by way of an interim ill health payment, as determined in accordance with Schedule 2A, may be incorrect.

(10) The power to redetermine the amount of an interim ill health payment under paragraph (9) includes the power to redetermine the amount as a result of a change in the amount of interim pension being paid to the qualifying member.

(11) If, having determined that an interim ill health payment may be made under paragraph (2), the scheme manager subsequently determines, in accordance with Schedule 2A, that no ill health payment is payable to or in respect of that qualifying member[F78 , that qualifying member’s surviving dependants] or his survivor, then the total of all F79 ... instalments of an interim ill health pension made to or in respect of that qualifying member[F80 , any surviving dependant] or his survivor is recoverable in accordance with regulation 7 of the FAS Information and Payments Regulations.]

Textual Amendments

F39 Reg. 17A - Reg. 17B inserted (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 10

F63 Words in reg. 17B(1) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(a)(i) (with reg. 37)

F64 Words in reg. 17B(1)(a) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(a)(ii) (with reg. 37)

F65 Words in reg. 17B(1)(b)(i) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(a)(iii) (with reg. 37)

F66 Words in reg. 17B(2) substituted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 6(2)

F67 Word in reg. 17B(2) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 7(2)(a) (with reg. 37)

F68 Words in reg. 17B(2)(b) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(b) (with reg. 37)

F69 Word in reg. 17B(4)(5) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 7(2)(a) (with reg. 37)

F70 Words in reg. 17B(5) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(c)(i) (with reg. 37)

F71 Words in reg. 17B(5) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(c)(ii) (with reg. 37)

F72 Word in reg. 17B(7)(a)(i) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(c) (with reg. 37)

F73 Word in reg. 17B(7)(a) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(d)(i) (with reg. 37)

F74 Word in reg. 17B(7)(b)(i) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(c) (with reg. 37)

F75 Reg. 17B(7)(c) and word added (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(d)(ii) (with reg. 37)

F76 Reg. 17B(8) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(e) (with reg. 37)

F77 Word in reg. 17B(9) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 7(1)(a) (with reg. 37)

F78 Words in reg. 17B(11) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(f)(i) (with reg. 37)

F79 Word in reg. 17B(11) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(c) (with reg. 37)

F80 Words in reg. 17B(11) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 14(f)(ii) (with reg. 37)

[F81 Annual payments for certain applications in cases of severe ill health U.K.

17C.— (1) A qualifying member shall be entitled to an annual payment determined in accordance with Schedule 2 where the conditions in paragraphs (2) and (3) are met.

(2) The condition in this paragraph is that, subject to paragraph (9), the qualifying member makes a written request for an annual payment under this regulation during the period of 12 months beginning with the date on which the Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 come into force.

(3) The conditions in this paragraph are that the scheme manager is satisfied that the qualifying member—

(a) has attained the age of 55;

(b) suffers from a progressive disease and as a consequence can reasonably be expected to die within five years;

(c) is unable to work due to ill health and is likely to continue to be so unable to work until normal retirement age; and

(d) is not regarded as a qualifying member by virtue of regulation 15(5).

(4) The date from which a qualifying member is entitled to an annual payment under this regulation is—

(a) where the scheme manager is satisfied that the conditions in paragraph (3) were met before the date on which the scheme manager receives the written request mentioned in paragraph (2), whichever is the later of—

(i) the date on which the scheme manager is satisfied that the conditions in paragraph (3) would first have been met; or

(ii) 14th May 2004; or

(b) in all other cases, the date on which the scheme manager receives the written request mentioned in paragraph (2).

(5) In determining whether or not the scheme manager is satisfied in accordance with paragraph (4)(a), the scheme manager shall have regard to—

(a) the information available as to the length of time the qualifying member has met the conditions in paragraph (3);

(b) the medical evidence available, taking into account—

(i) such evidence as the scheme manager would have expected the qualifying member to have been able to provide in accordance with Schedule 2 to the FAS Information and Payments Regulations, and

(ii) the effect of the lapse of time on the availability of that evidence; and

(c) such other matters as the scheme manager considers relevant.

(6) Paragraphs (4) to (7) of regulation 17 apply to annual payments made under this regulation.

(7) Paragraph (8) applies where—

(a) on the date the Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 come into force, the qualifying member is receiving a payment in accordance with these Regulations (other than payments for a survivor by virtue of regulation 17(4), 17A(3), 17B(2)(b) or 18(4)); and

(b) the qualifying member is entitled to an annual payment in accordance with this regulation.

(8) Where this paragraph applies, from the date on which the scheme manager determines that the qualifying member is entitled to an annual payment in accordance with this regulation—

(a) the qualifying member is not entitled to—

(i) an annual payment under regulation 17(2);

(ii) an annual payment for terminal illness under regulation 17(3); or

(iii) an ill health payment under regulation 17A(1); and

(b) the scheme manager may not make—

(i) an initial payment under regulation 18 in anticipation of an annual payment being payable under regulation 17(2);

(ii) an interim ill health payment under regulation 17B(2); or

(iii) an initial payment for terminal illness by virtue of [F82 regulation 18(4)].

(9) Where—

(a) a qualifying member has died;

(b) the scheme manager is satisfied that prior to death that qualifying member satisfied the conditions in paragraph (3); and

(c) the relevant representative makes a written request in respect of that qualifying member during the time period set out in paragraph (2);

that qualifying member shall be entitled to an annual payment in accordance with this regulation.

(10) Any annual payment (or initial payment under regulation 18) payable under paragraph (9) is payable to the estate of the deceased qualifying member.

(11) For the purposes of paragraph (9), references in these Regulations to “qualifying member” may be construed as references to the deceased qualifying member or to the deceased qualifying member’s estate, as the case requires.

(12) For the purposes of this regulation—

“relevant representative” means—

(a)

the survivor of the deceased qualifying member referred to in paragraph (9), or

(b)

where there is no survivor in relation to that qualifying member, that member’s personal representative; and

“personal representative” has the meaning given in regulation 2(1) of the FAS Information and Payments Regulations.]

Textual Amendments

F81 Reg. 17C inserted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 7

F82 Words in reg. 17C(8)(b)(iii) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 15 (with reg. 37)

[F83 Lump sum payments U.K.

17D.— (1) This regulation applies where the qualifying member—

(a) is a qualifying member to whom Part 7 applies;

(b) is a qualifying member of a qualifying pension scheme in respect of which a transfer notice has been given;

(c) is not regarded as a qualifying member by virtue of regulation 15(5);

(d) was not receiving a present payment under scheme rules before the day on which the transfer notice was given;

(e) has made a written request to commute for a lump sum a portion of the annual payment or ill health payment to which that qualifying member is entitled no later than—

(i) the day before the day on which the qualifying member becomes entitled to an annual payment or ill health payment; or

(ii) such later day by which the scheme manager may determine that it will accept a written request in the case of any particular member; and

(f) the notional pension determined for the qualifying member is more than nil.

(2) Where this regulation applies a qualifying member shall be entitled to commute for a lump sum a portion of the payments payable or which may become payable to and in respect of that qualifying member under these Regulations—

(a) subject to sub-paragraph (b), immediately before the day on which that member becomes entitled to an annual payment or ill health payment in accordance with these Regulations; or

(b) where paragraph (1)(e)(ii) applies, at any point prior to the date determined by the scheme manager under that paragraph.

(3) The portion commuted for a lump sum under paragraph (2) shall not exceed the revalued notional pension as construed in accordance with regulation 17(10) or, where the qualifying member is entitled to an ill health payment, regulation 17A(10).

(4) The lump sum payable under paragraph (2) is the actuarial equivalent of the commuted portion of payments to be made in respect of the qualifying member in accordance with these Regulations and shall not exceed 25% of the sum of—

(a) the product of 20 multiplied by the amount of the annual payment or ill health payment after commutation; and

(b) the lump sum derived from the portion commuted.

(5) The scheme manager shall only be bound to make a determination in relation to the amount of an annual payment or an ill health payment payable after the time within which the qualifying member may make a written request for a lump sum in accordance with paragraph (1)(e) has expired.

Textual Amendments

F83 Regs. 17D-17H inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 10(1)

Redetermination of an annual payment previously determined in accordance with Schedule 4 U.K.

17E.— (1) This regulation applies where, on an indexation date following the date on which the beneficiary first became entitled to an annual payment determined in accordance with Schedule 4, the aggregate of the amounts referred to in paragraph (2) is lower than the aggregate of the amounts referred to in paragraph (3).

(2) The amounts in this paragraph are—

(a) the amount of the annual payment determined in accordance with Schedule 4; and

(b) the amount of any annual increases to which the beneficiary was entitled on the indexation date in accordance with paragraph 7 of Schedule 4.

(3) The amounts in this paragraph are—

(a) the amount of an annual payment which would be determined in accordance with Schedule 2 in respect of the beneficiary; and

(b) the amount of any annual increases to which the beneficiary would be entitled in accordance with paragraph 9 of Schedule 2,

if the beneficiary were entitled to an annual payment determined in accordance with Schedule 2.

(4) Where this regulation applies—

(a) the scheme manager shall redetermine the amount of the annual payment; and

(b) the beneficiary shall, from the indexation date—

(i) be entitled to an annual payment determined in accordance with Schedule 2; and

(ii) cease to be entitled to an annual payment determined in accordance with Schedule 4.

Textual Amendments

F83 Regs. 17D-17H inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 10(1)

Redetermination of an ill health payment previously determined in accordance with Schedule 6 U.K.

17F.— (1) This regulation applies where, on an indexation date following the date on which the beneficiary first became entitled to an ill health payment determined in accordance with Schedule 6, the aggregate of the amounts referred to in paragraph (2) is lower than the aggregate of the amounts referred to in paragraph (3).

(2) The amounts in this paragraph are—

(a) the amount of the ill health payment determined in accordance with Schedule 6; and

(b) the amount of any annual increases to which the beneficiary was entitled on the indexation date in accordance with paragraph 7 of Schedule 6.

(3) The amounts in this paragraph are—

(a) the amount of an ill health payment which would be determined in accordance with Schedule 2A in respect of the beneficiary; and

(b) the amount of any annual increases to which the beneficiary would be entitled in accordance with paragraph 9 of Schedule 2A,

if the beneficiary were entitled to an ill health payment determined in accordance with Schedule 2A.

(4) Where this regulation applies—

(a) the scheme manager shall redetermine the amount of the ill health payment; and

(b) the beneficiary shall, from the indexation date—

(i) be entitled to an ill health payment determined in accordance with Schedule 2A; and

(ii) cease to be entitled to an ill health payment determined in accordance with Schedule 6.

Textual Amendments

F83 Regs. 17D-17H inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 10(1)

Payments to beneficiaries other than qualifying members, survivors and surviving dependants U.K.

17G.— (1) This regulation applies where—

(a) a notional pension has been determined in accordance with regulation 27 in respect of a person who—

(i) is not a qualifying member, a survivor or surviving dependant; but

(ii) is a person in respect of whom the qualifying pension scheme—

(aa) as a result of the death of a qualifying member, had a liability to provide a pension or other benefit at the calculation date; and

(bb) would have continued to have a liability to provide that pension or other benefit had the trustees or managers not been discharged from that liability under section 161 (as modified by Schedule 1 to these Regulations); and

(b) a transfer notice has been given in respect of the qualifying pension scheme.

(2) Where this regulation applies, that person shall be entitled to a payment, payable in respect of a year, which is the amount determined in accordance with Schedule 7.

(3) A person entitled to a payment under paragraph (2) shall be entitled to that payment—

(a) from the day on which the transfer notice in respect of the qualifying pension scheme is given; and

(b) until the day on which entitlement to a payment from the scheme would have ended in accordance with scheme rules.

(4) The year in respect of which the payment referred to in paragraph (2) is to be made shall be the year starting on the day on which an instalment of the payment is first payable to the person by virtue of regulation 19 and in respect of subsequent years, on each anniversary of that day.

(5) Where a person ceases to be entitled to a payment under this regulation in accordance with paragraph (3)(b)—

(a) subject to sub-paragraph (b), any further instalments of such a payment that would have been payable to that person, in respect of that year, cease to be payable; and

(b) any instalment of such a payment which is payable in respect of a period which includes the day on which the person has died or otherwise ceased to be entitled to a payment shall be payable.

Textual Amendments

F83 Regs. 17D-17H inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 10(1)

Payments to qualifying members receiving a pension from the qualifying pension scheme before entitlement to an annual payment or ill health payment U.K.

17H.— (1) This regulation applies where—

(a) a transfer notice has been given in respect of a qualifying pension scheme;

(b) a qualifying member is not entitled to an annual payment or an ill health payment; and

(c) that qualifying member was receiving present payment of a pension under the scheme rules on the day on which the transfer notice is given.

(2) Where this regulation applies, the qualifying member shall be entitled to a payment, payable in respect of a year, which is the amount determined in accordance with Schedule 7.

(3) A qualifying member entitled to a payment under paragraph (2) shall be entitled to that payment—

(a) from the day on which the transfer notice in respect of the qualifying pension scheme is given; and

(b) until the earlier of—

(i) the day before the day on which the qualifying member becomes entitled to an annual payment or an ill health payment; and

(ii) the day on which the qualifying member dies.

(4) The year in respect of which the payment referred to in paragraph (2) is to be made shall be the year starting on the day on which an instalment of the payment is first payable to the qualifying member by virtue of regulation 19 and in respect of subsequent years, on each anniversary of that day.

(5) Where the qualifying member ceases to be entitled to a payment under this regulation in accordance with paragraph (3)(b)—

(a) subject to sub-paragraph (b), any further instalments of such a payment that would have been payable to the qualifying member, in respect of that year, cease to be payable; and

(b) where the member dies before becoming entitled to an annual payment or ill health payment, any instalment of such a payment which is payable in respect of a period which includes the day on which the qualifying member died shall be payable.]

Textual Amendments

F83 Regs. 17D-17H inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 10(1)

[F84 Initial payments U.K.

18.—F85 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F86 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F86 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) [F87 [F88 Except where [F89 paragraph (4B) or] regulation 17C(8)(b)(i) or (iii) applies, the scheme manager] may, in [F90 its discretion], make a payment (“an initial payment”) to, or in respect of, a qualifying member[F91 , the qualifying member’s surviving dependants] or his survivor—

(a) in anticipation of an annual payment being payable under this Part to the qualifying member[F91 , the qualifying member’s surviving dependants] or his survivor, and on account of such a payment; and

(b) before any F92 ... instalment of that annual payment is made.]

(4A) [F87 An initial payment under paragraph (4) may be made—

(a) except where sub-paragraph (c) applies, to the qualifying member with effect from whichever is the later of—

(i) 14th May 2004; or

(ii) the [F93 earliest] of—

(aa) the day on which the qualifying member attains normal retirement age; or

(bb) the day on which the scheme manager is first notified that the qualifying member is terminally ill[F94 ; or]

(cc) [F94 the day on which the qualifying member becomes entitled to a payment under regulation 17(3C) or 17C;]

(b) if the qualifying member has died, to a survivor [F95 and any surviving dependants] of that qualifying member with effect from whichever is the later of—

(i) 14th May 2004; or

(ii) the day after the day on which that qualifying member died; or

(c) if the qualifying member is regarded as a qualifying member under regulation 15(5), to that member with effect from whichever is the later of—

(i) 14th May 2004; or

(ii) the date on which he became entitled to a present payment from the qualifying pension scheme.]

[F96 (4B) Where a qualifying member who has died was a party to a polygamous marriage the scheme manager may, in its discretion, make a payment (“a shared initial payment”) to each survivor—

(a) in anticipation of an annual payment being payable under this Part to those survivors;

(b) before any instalment of that annual payment is made; and

(c) with effect from whichever is the later of—

(i) 14th May 2004; and

(ii) the day after the day on which that qualifying member died.

(4C) In exercising its discretion under paragraph (4B), the scheme manager may only have regard to—

(a) the amount, if any, of any interim pension that was in payment, is in payment, or is proposed to be paid, from the qualifying pension scheme to any of the survivors of the qualifying member; and

(b) any circumstances relating to the scheme which, in the opinion of the scheme manager, are relevant to determining whether a shared initial payment should be made.

(4D) Paragraphs (5A) and (7) to (9A) shall apply to a shared initial payment under paragraph (4B) with the following modifications—

(a) for “paragraph (4)” in each place it occurs, substitute “paragraph (4B)”; and

(b) for “initial payment” in each place it occurs, substitute “shared initial payment”.]

(5) In exercising [F90 its discretion] under paragraph (4), the scheme manager may only have regard to—

(a) the amount, if any, of any interim pension that was in payment, is in payment, or is proposed to be paid, from the qualifying pension scheme—

(i) to a qualifying member up until his death; or

(ii) after his death, to his survivor [F97 or surviving dependants] ; and

(b) any circumstances relating to the scheme which, in the opinion of the scheme manager, are relevant to determining whether an initial payment should be made.

[F98 (5A) Where the trustees or managers have determined the amount of interim pension that would be paid to the qualifying member[F99 , any surviving dependants] or the survivor of that qualifying member, but do not propose to pay that interim pension for administrative reasons, the scheme manager may, in exercising [F100 its] discretion under paragraph (4) and in determining the amount of initial payment under Schedule 2, deem that member[F101 , that surviving dependant] or that survivor to be receiving that interim pension, if in the scheme manager’s opinion it is reasonable to do so.]

(6) Schedule 2 makes provision for the determination of the amount of initial payments [F102 and shared initial payments].

(7) If the scheme manager determines that an initial payment may be made under paragraph (4), the initial payment is payable—

(a) to a qualifying member from the relevant day mentioned in that paragraph until the day on which that qualifying member—

(i) would have been paid, or is paid, the first F103 ... instalment of an annual payment in accordance with regulation 19, if an annual payment were payable, or is payable, to him under this Part; or

(ii) dies,

whichever is the earlier; F104 ...

(b) in respect of a qualifying member who has died, to a survivor of that qualifying member from the day after the day on which that qualifying member died until the day on which his survivor—

(i) would have been paid, or is paid, the first F105 ... instalment of an annual payment in accordance with regulation 19, if an annual payment were payable, or is payable, to him under this Part; or

(ii) dies,

whichever is the earlier; [F106 and]

[F106 (c) in respect of a qualifying member who has died, to a surviving dependant of that qualifying member from the day after the day on which that qualifying member died until the surviving dependant—

(i) would have been paid, or is paid, the first instalment of an annual payment in accordance with regulation 19, if an annual payment were payable, or is payable, to that surviving dependant under this Part; or

(ii) dies or otherwise ceases to be entitled to an annual payment in accordance with regulation 17,

whichever is the earlier.]

(8) [F107 Where a beneficiary dies or otherwise ceases to be entitled to an annual payment—

(a) subject to sub-paragraph (b), any further instalments of an initial payment that would have been payable to that beneficiary, in respect of that year, cease to be payable;

(b) any instalment of an initial payment which is payable in respect of a period which includes the day on which the beneficiary has died or otherwise ceased to be entitled to an annual payment shall be payable.]

(9) The scheme manager may, at any time before the amount of the annual payment is determined, redetermine the amount of any initial payment paid under paragraph (4) if [F108 it] is satisfied that the amount being paid by way of initial payment, as determined in accordance with Schedule 2, may be incorrect.

[F109 (9ZA) The power to redetermine the amount of an initial payment under paragraph (9) includes the power to redetermine that amount as a result of a change in the amount of interim pension being paid to the beneficiary.]

[F110 (9A) If, having determined that an initial payment may be made under paragraph (4), the scheme manager subsequently determines, in accordance with Schedule 2, that no annual payment is payable to or in respect of that qualifying member [F111 or that qualifying member’s survivor or surviving dependant], then the total of all F112 ... instalments of an initial payment made to or in respect of that qualifying member [F111 or that qualifying member’s survivor or surviving dependant] is recoverable in accordance with regulation 7 of the FAS Information and Payments Regulations.]

F113 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F84 Reg. 18 substituted (24.11.2005) by The Financial Assistance Scheme (Modifications and Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3256), regs. 1(1), 4(4)

F85 Reg. 18(1) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(a) (with reg. 37)

F86 Reg. 18(2)(3) omitted (17.7.2008) by virtue of The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 11(a)

F87 Reg. 18(4)(4A) substituted for reg. 18(4) (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 11(b)

F88 Words in reg. 18(4) substituted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 8(3)

F89 Words in reg. 18(4) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(b)(i) (with reg. 37)

F90 Words in reg. 18(4)(5) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 7(3) (with reg. 37)

F91 Words in reg. 18(4) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(b)(ii) (with reg. 37)

F92 Word in reg. 18(4)(b) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(d) (with reg. 37)

F93 Word in reg. 18(4A)(a)(ii) substituted (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 8(4)(a)

F94 Reg. 18(4A)(a)(ii)(cc) and word added (27.3.2009) by The Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2009 (S.I. 2009/792), regs. 1(1), 8(4)(b)

F95 Words in reg. 18(4A)(b) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(c) (with reg. 37)

F96 Reg. 18(4B)-(4D) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(d) (with reg. 37)

F97 Words in reg. 18(5)(a)(ii) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(e) (with reg. 37)

F98 Reg. 18(5A) inserted (16.12.2006) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/3370), regs. 1(1), 6(2)(d)

F99 Words in reg. 18(5A) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(f)(i) (with reg. 37)

F100 Word in reg. 18(5A) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 7(2)(a) (with reg. 37)

F101 Words in reg. 18(5A) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(f)(ii) (with reg. 37)

F102 Words in reg. 18(6) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(g) (with reg. 37)

F103 Word in reg. 18(7)(a)(i) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(d) (with reg. 37)

F104 Word in reg. 18(7)(a) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(h)(i) (with reg. 37)

F105 Word in reg. 18(7)(b)(i) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(d) (with reg. 37)

F106 Reg. 18(7)(c) and word added (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(h)(ii) (with reg. 37)

F107 Reg. 18(8) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(i) (with reg. 37)

F108 Word in reg. 18(9) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 7(1)(a) (with reg. 37)

F109 Reg. 18(9ZA) inserted (19.12.2007) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/3581), regs. 1(1), 6(2)(c)

F110 Reg. 18(9A) inserted (16.12.2006) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/3370), regs. 1(1), 6(2)(e)

F111 Words in reg. 18(9A) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 16(j) (with reg. 37)

F112 Word in reg. 18(9A) omitted (10.7.2009) by virtue of The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 17(2)(d) (with reg. 37)

F113 Reg. 18(10) omitted (17.7.2008) by virtue of The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 11(a)

[F114 Death benefit guarantees U.K.

18A.— (1) This regulation applies where—

(a) a qualifying member was entitled to an annual payment determined in accordance with Schedule 4 or 6;

(b) under scheme rules, an amount was payable as a result of the qualifying member dying within a period specified in the scheme rules; and

(c) the qualifying member dies within the period specified.

(2) Where this regulation applies, the scheme manager shall pay the amount payable—

(a) to such person or persons specified in the scheme rules;

(b) where no person is specified in the scheme rules, but the qualifying member has made a valid nomination in accordance with those rules, to such person or such persons nominated by the qualifying member; or

(c) where neither sub-paragraph (a) nor (b) applies—

(i) to any survivor; or

(ii) if there is no survivor, to any surviving dependant; or

(iii) if there is no survivor or surviving dependant, to the estate of the qualifying member.

(3) In any case where the scheme manager is required under paragraph (2) to make a payment in respect of the qualifying member to more than one person, the amount payable shall be divided between the beneficiaries—

(a) where paragraph (2)(a) or (b) applies and the scheme rules make provision for how the amount is to be divided, in accordance with scheme rules; and

(b) in all other cases, equally.

(4) Where a payment to be made under this regulation would, but for this paragraph, include a fraction of a penny, that fraction shall be disregarded if it is less than half a penny and shall otherwise be treated as a penny.

(5) Payments made under this regulation shall be made by means of direct credit transfer or by such other means as appear to the scheme manager to be appropriate in the circumstances of any particular case.]

Textual Amendments

F114 Reg. 18A inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 11