The Financial Assistance Scheme Regulations 2005

PART 5 U.K. ANNUAL AND INITIAL PAYMENTS

Annual payments U.K.

17.—(1) Schedule 2 makes 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) a cap to be imposed on such amounts; and

(b) an amount to be paid only where an amount determined under that Schedule is equal to, or exceeds, a specified amount.

(2) Except where paragraph (3) applies, a qualifying member of a qualifying pension scheme shall be entitled to an annual payment determined in accordance with Schedule 2 from—

(a) 14^th May 2004; or

(b) the day on which the qualifying member attains the age of 65,

whichever is the later.

(3) Where the scheme manager is satisfied that a qualifying member is terminally ill within the meaning given in section 66(2)(a) of the Social Security Contributions and Benefits Act 1992 M1 , that member shall be entitled to an annual payment determined in accordance with Schedule 2 from the day on which the scheme manager is first notified that that member may be terminally ill.

(4) A survivor of a qualifying member of a qualifying pension scheme shall be entitled to an annual payment determined in accordance with Schedule 2 from—

(a) 14^th May 2004; or

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

whichever is the later.

(5) The year in respect of which the annual payment is to be made shall be the year starting on the day on which a monthly 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.

(6) Annual payments which are payable to a beneficiary under this Part shall continue for life.

Initial payments U.K.

18.—(1) This regulation applies where—

(a) a qualifying pension scheme is winding up; and

(b) a qualifying member of that scheme—

(i) has attained the age of 64; or

(ii) has not attained that age but the scheme manager is satisfied that that member is terminally ill within the meaning given in section 66(2)(a) of the Social Security Contributions and Benefits Act 1992.

(2) Where this regulation applies, the trustees or managers of the scheme may make a written request to the scheme manager for a payment to be made to that qualifying member (“an initial payment”).

(3) On receipt of a request for an initial payment, the scheme manager may, in his discretion, make an initial payment to the qualifying member from the day on which—

(a) the member attains the age of 65; or

(b) if earlier, it is determined that the member is terminally ill within the meaning in paragraph (1)(b)(ii),

in anticipation of that member being entitled to an annual payment.

(4) In exercising his discretion under paragraph (3), the scheme manager may only have regard to—

(a) the amount, if any, of any interim pension within the meaning in paragraph 2 of Schedule 2 M2 being paid to the qualifying member from the qualifying pension scheme; 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.

(5) Schedule 2 makes provision for the determination of the amount of initial payments.

(6) 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 (3) if he is satisfied that the amount being paid by way of initial payment, as determined in accordance with Schedule 2, may be incorrect.