PART 5ANNUAL AND INITIAL PAYMENTS
F1Ill health payments17A
1
Except where the qualifying member is entitled to an annual payment under regulation 17(2)F2, (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 F4or a surviving dependant; and
b
that qualifying member was receiving an ill health payment or an interim ill health payment when he died,
the survivor F5and any surviving dependants 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 F10an 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 F9... 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 F9... 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
F36A
Ill health payments which are payable to a surviving dependant under this regulation shall continue, subject to paragraph (7), 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.
6B
Where an ill health payment ceases to be payable to a surviving dependant as a result of paragraph (6A)(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 ill health payment determined in accordance with Schedule 2A 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 (6A).
F87
Where a beneficiary dies or otherwise ceases to be entitled to an ill health payment—
a
subject to sub-paragraph (b), 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;
b
any instalment of an ill health 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 ill health payment shall 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.