17AA.—(1) This regulation gives the meaning of “the FAS cap” for the purposes of—
(a)Schedule 2 (determination of annual and initial payments); and
(b)Schedule 2A (determination of ill health and interim ill health payments).
(2) In this regulation, “the standard amount” means the appropriate amount given in—
(a)paragraph 7(3) of Schedule 2 in the case of an annual or initial payment; and
(b)paragraph 7(3) of Schedule 2A in the case of an ill health or interim ill health payment.
(3) The FAS cap for or in respect of a person who has 20 or fewer years of pensionable service at the time when the person first becomes entitled to an annual payment or (as the case may be) an ill health payment is the standard amount.
(4) Subject to paragraph (6), the FAS cap for or in respect of a person who has more than 20 years of pensionable service at that time is the sum of—
(a)the standard amount, and
(b)for each whole year of pensionable service that exceeds 20 years of pensionable service, the amount found by multiplying the standard amount by 3%.
(5) If the total amount calculated under paragraph (4)(b) would exceed the standard amount, it is to be treated as being equal to the standard amount.
(6) The FAS cap for the purposes of determining the amount of an initial payment or an interim ill health payment is the standard amount.
(7) In any case where—
(a)the scheme manager cannot determine the length of some or all of a person’s pensionable service under the scheme rules; or
(b)the person has benefits under the rules which are not attributable to a particular period of pensionable service,
the scheme manager must treat the person as having a length of pensionable service as the scheme manager considers appropriate (which is in addition to any other pensionable service the person has for the purposes of this regulation), having regard to the scheme rules and to such other information as the scheme manager considers relevant.
(8) When calculating a person’s pensionable service for the purpose of determining the amount of the FAS cap in relation to a qualifying pension scheme, no account is to be taken of any pensionable service that the person may have under a different pension scheme.
(9) A person who is regarded as a qualifying member under regulation 15(5) (qualifying members) must be treated for the purposes of this regulation as having pensionable service of the same length as the deceased former member (which is in addition to any pensionable service that the person is treated as having under paragraph (7)).
(10) A pension credit member credited with a length of notional pensionable service because of pension credit rights must be treated for the purposes of this regulation as having pensionable service of that length (which is in addition to any pensionable service that the person is treated as having under paragraph (7)).]
Textual Amendments
F1Reg. 17AA inserted (21.2.2018) by The Financial Assistance Scheme (Increased Cap for Long Service) Regulations 2018 (S.I. 2018/207), regs. 1(1), 2 (with reg. 5)