The Financial Assistance Scheme Regulations 2005

1. Introductory Text

2. PART 1 GENERAL

   1. 1. Citation, commencement and extent

   2. 2. Interpretation

   3. 3. Commencement of winding up

   4. 4. Application of Parts 1 and 2 of the Act

3. PART 2 ESTABLISHMENT OF THE FINANCIAL ASSISTANCE SCHEME

   1. 5. Scheme manager

   2. 5A. Functions of the Board of the Pension Protection Fund in relation to the financial assistance scheme

   3. 6. Financial and other arrangements to enable or assist the Board of the Pension Protection Fund to carry out its functions in relation to the financial assistance scheme

   4. 6A. Use of information

   5. 7. Annual reports

   6. 8. Delegation

4. PART 3 QUALIFYING PENSION SCHEMES

   1. 9. Qualifying pension schemes

   2. 10. Other schemes which are not qualifying pension schemes

   3. 11. Condition to be satisfied by employer

   4. 12. Condition to be satisfied: multi-employer schemes

   5. 12A. Employer-related condition

   6. 12B. Employer-related condition: multi-employer schemes

   7. 13. Insolvency events

   8. 14. Notification of details

   9. 14A. Working with qualifying pension schemes

   10. 14B. Payments in relation to administration or other costs

5. PART 4 QUALIFYING MEMBERS

   1. 15. Qualifying members

   2. 15A. Qualifying members for the purposes of section 286A

   3. 16. Insufficient assets

   4. 16A. Survivors

   5. 16B. Surviving dependants

6. PART 5 ANNUAL AND INITIAL PAYMENTS

   1. 17. Annual payments

   2. 17A. Ill health payments

   3. 17AA. Meaning of “the FAS cap”

   4. 17B. Interim ill health payments

   5. 17C. Annual payments for certain applications in cases of severe ill health

   6. 17D. Lump sum payments

   7. 17E. Redetermination of an annual payment previously determined in accordance with Schedule 4

   8. 17F. Redetermination of an ill health payment previously determined in accordance with Schedule 6

   9. 17G. Payments to beneficiaries other than qualifying members, survivors and surviving dependants

   10. 17H. Payments to qualifying members receiving a pension from the qualifying pension scheme before entitlement to an annual payment or ill health payment

   11. 18. Initial payments

   12. 18A. Death benefit guarantees

7. PART 6 ADMINISTRATION OF PAYMENTS

   1. 19. Time and manner of payment: general provisions

   2. 20. Direct credit transfer

8. PART 7 Valuation of assets and liabilities

   1. 21. Application of this Part

   2. 22. Scheme manager to obtain a valuation of assets and liabilities

   3. 23. Valuation of assets

   4. 24. Power of the scheme manager to determine the value of an asset

   5. 25. Approval of valuation

   6. 26. Binding valuation

9. PART 8 Scheme manager functions after a valuation

   1. 27. Scheme manager calculations after a valuation

   2. 28. Determination of certain asset shares, notional pensions and survivor notional pensions

   3. 29. Transfer notice

   4. 30. Terms and conditions of contracts

10. PART 9 Miscellaneous payments and residual assets

    1. 31. Payments where amounts relating to money purchase benefits are transferred to the Secretary of State

    2. 32. Payments to estates where a person in receipt of a payment from a scheme dies prior to entitlement and prior to transfer of assets

    3. 33. Transfer of residual assets to the Secretary of State where Part 7 does not apply

11. Signature

12. 1. SCHEDULE 1

       MODIFICATION OF CERTAIN PROVISIONS OF PARTS 1 AND 2 OF THE ACT

       1. 1. In section 68 (power for the Regulator to collect information...

       2. 2. In section 85 (disclosure by the Regulator for facilitating the...

       3. 3. In section 88(4) (disclosure of tax information by the Regulator),...

       4. 3ZA. In section 113 (investment of funds)— (a) at the beginning...

       5. 3ZB. After section 114(4) (investment principles), insert— (4A) A statement of...

       6. 3ZC. In section 115(1)(a) (borrowing), after “any of its functions”, insert...

       7. 3ZD. In section 117(1)(b) (administration levy), after “section 116”, insert “except...

       8. 3ZE. In section 119 (annual reports to Secretary of State)—

       9. 3A. In section 134 (directions)— (a) in subsection (1), for “there...

       10. 3B. In section 135 (restrictions on winding up, discharge of liabilities...

       11. 3C. In section 136 (power to validate contraventions of section 135)—...

       12. 3D. In section 161 (effect of Board assuming responsibility for a...

       13. 3E. In section 165 (guaranteed minimum pensions)— (a) in subsection (1)—...

       14. 4. In section 168 (administration of compensation payable by the Board)—...

       15. 5. In section 190 (information to be provided to the Board...

       16. 6. In section 191 (notices requiring provision of information to the...

       17. 7. In section 192 (entry of premises to enable performance of...

       18. 8. In section 194 (warrants to enforce entry of premises and...

       19. 9. In section 195(1)(b) (offence of providing false or misleading information...

       20. 10. In section 196 (use of information by the Board)—

       21. 11. In section 197 (restricted information)— (a) in subsections (1) and...

       22. 12. In section 198 (disclosure by the Board of restricted information...

       23. 13. In section 200(1) (disclosure by the Board of restricted information...

       24. 14. In section 201 (other permitted disclosures of restricted information by...

       25. 14A. In section 202 (tax information)— (a) in each place it...

       26. 15. In section 203 (provision of information to members of schemes...

       27. 16. In section 204 (interpretation of sections 190 to 203)—

       28. 17. In paragraph 18(2) of Schedule 5 (delegation)—

       29. 18. In paragraph 22(7)(a) of Schedule 5 (accounts), for “the date...

       30. 19. In Schedule 6 (transfer of property, rights and liabilities to...

    2. SCHEDULE 2

       DETERMINATION OF ANNUAL AND INITIAL PAYMENTS

       1. 1. Introductory

       2. 2. Actual pension

       3. 2A. Annual redetermination

       4. 3. Qualifying members receiving pensions from the qualifying pension scheme

       5. 4. Active and deferred members

       6. 4A. Bridging pensions

       7. 4B. Pension payable at an age other than normal retirement age

       8. 5. Survivors of qualifying members

       9. 5A. Payment for an entitlement under regulation 17C

       10. 5B. Surviving dependants of qualifying members

       11. 6. Exclusion of certain benefits

       12. 7. Cap on expected pension and actual pension

       13. 8. De minimis rule

       14. 9. Annual increase to an annual payment

       15. 10. Initial payments

       16. 10A. Shared initial payments

       17. 11. Rounding

    3. SCHEDULE 2A

       DETERMINATION OF ILL HEALTH AND INTERIM ILL HEALTH PAYMENTS

       1. 1. Introductory

       2. 2. Amount of an ill health payment

       3. 2A. Amount of an ill health payment to a surviving dependant

       4. 3. Amount of an interim ill health payment

       5. 3A. Amount of an interim ill health payment for a surviving dependant

       6. 4. Revaluation

       7. 5. Actuarial reduction

       8. 6. Modifications to Schedule 2

       9. 7. Cap on expected pension and actual pension

       10. 8. Rounding

       11. 9. Annual increase to an ill health payment

       12. 10. Annual redetermination

       13. 11. Bridging pensions

    4. SCHEDULE 3

       Determination of certain annual payments

       1. 1. Introductory

       2. 2. Amount of an annual payment – qualifying members

       3. 3. Amount of an annual payment - survivors

       4. 4. Surviving Dependants

       5. 5. Rounding

       6. 6. Annual increases to an annual payment

    5. SCHEDULE 4

       Determination of annual payments where a present payment was being received on the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010

       1. 1. Introductory

       2. 2. Qualifying members

       3. 3. Survivors

       4. 4. Surviving Dependants

       5. 5. Redetermination

       6. 6. Rounding

       7. 7. Annual increases to an annual payment

    6. SCHEDULE 5

       Determination of certain ill health payments

       1. 1. Introductory

       2. 2. Amount of an ill health payment – qualifying members

       3. 3. Amount of an ill health payment - survivors

       4. 4. Amount of an ill health payment - surviving dependants

       5. 5. Rounding

       6. 6. Annual increases to an ill health payment

    7. SCHEDULE 6

       Determination of ill health payments where a present payment was being received on the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010

       1. 1. Introductory

       2. 2. Qualifying members

       3. 3. Survivors

       4. 4. Surviving Dependants

       5. 5. Redetermination

       6. 6. Rounding

       7. 7. Annual increases to an ill health payment

    8. SCHEDULE 7

       Determination of payments to early retirees and other beneficiaries

       1. 1. Introductory

       2. 2. Amount of the payment where regulation 17G applies

       3. 3. Amount of the payment where regulation 17H applies

       4. 4. Annual increases

13. Explanatory Note