The Financial Assistance Scheme Regulations 2005

Changes over time for: Section 17

Version Superseded: 02/04/2010

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Annual paymentsU.K.

This section has no associated Explanatory Memorandum

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)14^th 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)14^th 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)F10... 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 [F11it] considers relevant.]

[F12(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) [F13Except where regulation 17A(3) applies [F14and subject to paragraph (4C)],] 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.

[F15(4A) Except where regulation 17A(3) applies and subject to paragraph (4C), a surviving dependant 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;

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

(c)where a surviving dependant is an unborn child on the day on which the qualifying member died, the day on which that surviving dependant is born,

whichever is the latest.

(4B) An annual payment payable to a surviving dependant under paragraph (4A) shall continue, subject to paragraph (5B), until the surviving dependant—

(a)where neither sub-paragraph (b) nor (c) applies, attains the age of 18;

(b)where the surviving dependant is attending a qualifying course—

(i)attains the age of 23; or

(ii)leaves the qualifying course,

whichever is the earlier; or

(c)where the surviving dependant is incapable of engaging in full time paid employment due to having a disability within the meaning of the Disability Discrimination Act 1995, attains the age of 23.

(4C) A survivor or surviving dependant of a person who is regarded as a qualifying member under regulation 15(5) is not entitled to an annual payment as a survivor or surviving dependant of that qualifying member.

(4D) Where an annual payment ceases to be payable to a surviving dependant as a result of paragraph (4B)(a) or (b)(ii) and the surviving dependant subsequently—

(a)attends a qualifying course; or

(b)becomes incapable of engaging in full time paid employment due to having a disability within the meaning of the Disability Discrimination Act 1995,

before attaining the age of 23, that surviving dependant shall be entitled to an annual payment determined in accordance with Schedule 2 from the day on which the scheme manager is satisfied that the surviving dependant satisfies sub-paragraph (a) or (b) until a day determined in accordance with paragraph (4B).]

(5) The year in respect of which the annual payment is to be made shall be the year starting on the day on which [F16an 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.

[F17(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 F18... 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 F18... 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).]

[F19(5B) Where a beneficiary dies or otherwise ceases to be entitled to an annual payment—

(a)subject to sub-paragraph (b), any further instalments of an annual payment that would have been payable to that beneficiary, in respect of that year, cease to be payable;

(b)any instalment of an annual 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.]

(6) [F20Subject to [F21paragraphs (3A)(b) [F22and (5B), regulation 17C(8) and paragraphs 2A and 4A of Schedule 2]], annual] payments which are payable to a [F23qualifying member or survivor] under this Part shall continue for life.