The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010

Amendment of Schedule 2A

17.  In Schedule 2A (determination of ill health and interim ill health payments)—

(a) in paragraph 2—

(i) for the formula in sub-paragraph (2), substitute—

(ii) for the formula in sub-paragraph (2A), substitute—

and

(iii) in sub-paragraph (3)—

(aa) omit the definitions of “D”, “E” and “H”; and

(bb) after the definition of “N” insert—

““Q” means the sum of—

(a)

the product of C multiplied by A multiplied by 0.9; and

(b)

the total amount of any annual increases determined in accordance with paragraph 9 to which the qualifying member was entitled on the day on which the qualifying member died;

“S” means—

(a)

where sub-paragraph (2B) applies, the total amount of any annual increases to which any survivor was entitled on the day on which the survivor died; and

(b)

in all other cases, nil.”;

(b) for paragraph 2A, substitute—

“2A.— (1) The amount of an ill health payment payable to a surviving dependant of a qualifying member shall be determined in accordance with sub-paragraphs (2) to (5).

(2) Where an ill health payment is also payable to a survivor of the qualifying member and—

(a) there is only one surviving dependant, the amount of the ill health payment shall be—

(b) there are two or more surviving dependants, the amount of the ill health payment shall be—

(3) Where the qualifying member does not have a survivor and—

(a) there is only one surviving dependant, the amount of the ill health payment shall be—

(b) there are two or more surviving dependants, the amount of the ill health payment shall be—

(4) Where—

(a) a survivor of a qualifying member, who is not a person who is treated as a survivor by virtue of regulation 37 of the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009, dies;

(b) a person ceases to be a surviving dependant of a qualifying member; or

(c) another person becomes entitled to an ill health payment as a surviving dependant of a qualifying member,

the ill health payment payable to a surviving dependant of that qualifying member shall be redetermined with effect from the day after the day on which the event referred to in paragraphs (a) to (c) occurred.

(5) In this paragraph—

“A” means the amount of expected pension which would be determined in accordance with Schedule 2 if—

(a)

the qualifying member were entitled to an annual payment; and

(b)

the modifications in paragraph 6 applied;

“B” means—

(a)

where there is only one surviving dependant, the actual pension of that surviving dependant which would be determined in accordance with Schedule 2 if—

(i)

the surviving dependant were entitled to an annual payment; and

(ii)

the modifications in paragraph 6 applied;

(b)

where there are two or more surviving dependants, the sum of the actual pensions of all the surviving dependants of the qualifying member which would be determined in accordance with Schedule 2 if—

(i)

the surviving dependants were entitled to annual payments; and

(ii)

the modifications in paragraph 6 applied;

“C” means the actuarial factor, determined in accordance with paragraph 5, to be applied;

“D” means—

(a)

subject to paragraph (b), where sub-paragraph (4) applies, the total amount of annual increases to which any surviving dependant was entitled under this Schedule on the day on which the event referred to in paragraphs (a) to (c) of that sub-paragraph occurred;

(b)

where sub-paragraph (4)(a) applies and, as a result, the annual payment payable to a surviving dependant is redetermined under sub-paragraph (3)(a), nil; and

(c)

in all other cases, nil;

“N” means the number of surviving dependants of the qualifying member;

“Q” means the sum of—

(a)

the product of C multiplied by A multiplied by 0.9; and

(b)

the total amount of any annual increases determined in accordance with paragraph 9 to which the qualifying member was entitled on the day on which the qualifying member died; and

“S” means—

(a)

where sub-paragraph (4)(a) applies and, as a result the annual payment payable to a surviving dependant is redetermined under sub-paragraph (3), the total amount of annual increases to which the survivor was entitled on the day on which the survivor died; and

(b)

in all other cases, nil.”;

(c) in paragraph 3(3), in the definition of “H” for “before” substitute “on”;

(d) in paragraph 3A(4)—

(i) after paragraph (a), omit “or”;

(ii) after paragraph (b), insert—

“; or

(c) another person becomes entitled to an ill health payment as a surviving dependant of a qualifying member.”; and

(iii) for “the survivor died or the person ceased to be a surviving dependant” substitute “the event referred to in paragraphs (a) to (c) occurred”;

(e) in paragraph 3A(5), in the definition of “H” for “before” substitute “on”;

(f) in paragraph 5, for “paragraphs 2 and 3” substitute “paragraphs 2 to 3A”;

(g) in paragraph 6—

(i) before sub-paragraph (za) insert—

“(zza) in paragraph 1(2), in the definition of “revalued notional pension” for “regulation 17(10)” substitute “regulation 17A(10);” and

(ii) after sub-paragraph (za) insert—

“(zab) in paragraph 2(3H)(b), for “Schedule 4”, substitute “Schedule 6”;

(zac) in paragraph 3(3) and (3ZD), for “attains normal retirement age” substitute “becomes entitled to an ill health payment”.”;

(h) in paragraph 9(2), in the definition of “W” omit the words “the day before”; and

(i) in paragraph 11, for sub-paragraph (1)(b) substitute—

“(b) either—

(i) an annuity has been purchased for the beneficiary which provides for payment of a pension to the beneficiary at a lower annual rate from the date on which the amount referred to in sub-paragraph (1)(a) would have ceased to be payable under the rules of the pension scheme; or

(ii) a notional pension has been determined in respect of the beneficiary which includes an amount in respect of an amount which under scheme rules would be payable for a period which is shorter than the period in respect of which the remainder of the pension would be payable.”.