The Financial Assistance Scheme Regulations 2005

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[F1Initial paymentsU.K.

This section has no associated Explanatory Memorandum

18.—F2(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) [F4[F5Except where [F6paragraph (4B) or] regulation 17C(8)(b)(i) or (iii) applies, the scheme manager] may, in [F7its discretion], make a payment (“an initial payment”) to, or in respect of, a qualifying member[F8, 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[F8, the qualifying member’s surviving dependants] or his survivor, and on account of such a payment; and

(b)before any F9... instalment of that annual payment is made.]

(4A) [F4An 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 [F10earliest] 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[F11; or]

(cc)[F11the 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 [F12and 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.]

[F13(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 [F7its 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 [F14or 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.

[F15(5A) Where the trustees or managers have determined the amount of interim pension that would be paid to the qualifying member[F16, 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 [F17its] discretion under paragraph (4) and in determining the amount of initial payment under Schedule 2, deem that member[F18, 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 [F19and 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 F20... 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; F21...

(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 F22... 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; [F23and]

[F23(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) [F24Where 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 [F25it] is satisfied that the amount being paid by way of initial payment, as determined in accordance with Schedule 2, may be incorrect.

[F26(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.]

[F27(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 [F28or that qualifying member’s survivor or surviving dependant], then the total of all F29... instalments of an initial payment made to or in respect of that qualifying member [F28or that qualifying member’s survivor or surviving dependant] is recoverable in accordance with regulation 7 of the FAS Information and Payments Regulations.]