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The Financial Assistance Scheme Regulations 2005

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PART 5U.K.ANNUAL AND INITIAL PAYMENTS

Annual paymentsU.K.

17.—[F1(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 cap to be imposed on such amounts.]

(2) Except where paragraph (3)[F2, (3A) or (3C) or regulation 17C] applies [F3or 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 determined in accordance with Schedule 2 from—

(a)14th May 2004; or

(b)the day on which the qualifying member attains [F4normal retirement age],

whichever is the later.

(3) [F5Except where the qualifying member is receiving [F6a payment under paragraph (3C) or] an ill health payment under regulation 17A(1) or an interim ill health payment under regulation 17B(2) [F7or an annual payment under regulation 17C],] where the scheme manager is satisfied that a qualifying member is terminally ill F8..., 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.

[F9(3A) Where a person is regarded as a qualifying member under regulation 15(5)—

(a)that member shall be entitled to an annual payment determined in accordance with Schedule 2 from—

(i)14th 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)monthly 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 he considers relevant.]

[F10(3C) Except where regulation 17C applies, a qualifying member shall be entitled to an annual payment determined in accordance with Schedule 2 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) [F11Except where regulation 17A(3) applies,] 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)14th 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.

[F12(5A) In determining the amount of annual payment that is payable to, or in respect of, a beneficiary for any previous year or years (“arrears payable”)—

(a)the total of all monthly 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 monthly 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).]

[F13(5B) From the day after the day on which a beneficiary dies, any further monthly instalments of an annual payment that would have been payable to that beneficiary, in respect of that year, cease to be payable.]

(6) [F14Subject to [F15paragraphs (3A)(b)[F16, (5B) and regulation 17C(8)]], annual] payments which are payable to a beneficiary under this Part shall continue for life.

[F17(7) Paragraphs 7 and 8 of Schedule 2 provide for the circumstances in which an annual payment is not payable under this Part.]

Textual Amendments

[F18Ill health paymentsU.K.

17A.—(1) Except where the qualifying member is entitled to an annual payment under regulation 17(2)[F19, (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”) in accordance with paragraph 2 of Schedule 2A 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; and

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

the survivor 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 a monthly 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 for any previous year or years (“arrears payable”)—

(a)the total of all monthly 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 monthly 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) [F20and regulation 17C(7)], ill health payments which are payable to a beneficiary under this regulation shall continue for life.

(7) From the day after the day on which a beneficiary dies, 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.

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

Textual Amendments

Interim ill health paymentsU.K.

17B.—(1) This regulation applies where a qualifying pension scheme is winding up and—

(a)the scheme manager has been notified that, and is satisfied that, a qualifying member of that 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; and

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

(2) [F21Except where regulation 17C(8)(b)(i) applies, the scheme manager] may, in his 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 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 his 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 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 his discretion under paragraph (2) and in determining the amount of interim ill health payment under Schedule 2A, deem that member 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 monthly 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; and

(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 monthly 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.

(8) From the day after the day on which a beneficiary dies, any further monthly instalments of an interim ill health payment that would have been payable to that beneficiary, in respect of that year, cease to 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 he 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 or his survivor, then the total of all monthly instalments of an interim ill health pension made to or in respect of that qualifying member or his survivor is recoverable in accordance with regulation 7 of the FAS Information and Payments Regulations.]

Textual Amendments

[F22Annual payments for certain applications in cases of severe ill healthU.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 regulation 18(1)(a)(ii) and (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

[F23Initial paymentsU.K.

18.—(1) F24... this regulation applies where a qualifying pension scheme is winding up and—

(a)a qualifying member of that scheme—

(i)has attained [F25the age which is one year less than normal retirement age]; or

(ii)has not attained that age, but the scheme manager—

(aa)has been notified that a qualifying member is terminally ill; and

(bb)is satisfied as to that fact; F26...

[F27(aa)a person is regarded as a qualifying member under regulation 15(5); or]

[F28(ab)the scheme manager—

(i)has received a written request under regulation 17(3C)(a) or 17C(2) or (9) from, or in respect of, a qualifying member of that scheme; and

(ii)is satisfied that that qualifying member is entitled to a payment under regulation 17(3C) or 17C; or]

(b)a qualifying member of that scheme has died and leaves a survivor.

F29(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) [F30[F31Except where regulation 17C(8)(b)(i) or (iii) applies, the scheme manager] may, in his discretion, make a payment (“an initial payment”) to, or in respect of, a qualifying member or his survivor—

(a)in anticipation of an annual payment being payable under this Part to the qualifying member or his survivor, and on account of such a payment; and

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

(4A) [F30An 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 [F32earliest] 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[F33; or]

(cc)[F33the 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 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.]

(5) In exercising his 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; 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.

[F34(5A) Where the trustees or managers have determined the amount of interim pension that would be paid to the qualifying member 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 his discretion under paragraph (4) and in determining the amount of initial payment under Schedule 2, deem that member 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.

(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 monthly 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; and

(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 monthly 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.

(8) From the day after the day on which a beneficiary dies, any further monthly instalments of an initial payment that would have been payable to that beneficiary in respect of that year cease to 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 he is satisfied that the amount being paid by way of initial payment, as determined in accordance with Schedule 2, may be incorrect.

[F35(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.]

[F36(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 or his survivor, then the total of all monthly instalments of an initial payment made to or in respect of that qualifying member or his survivor is recoverable in accordance with regulation 7 of the FAS Information and Payments Regulations.]

F37(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

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