The Financial Assistance Scheme Regulations 2005

[F1Interim ill health paymentsU.K.

This section has no associated Explanatory Memorandum

17B.—(1) This regulation applies where F2...—

(a)the scheme manager has been notified that, and is satisfied that, a qualifying member of [F3a qualifying pension 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 [F4or a surviving dependant]; and

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

(2) [F5Except where regulation 17C(8)(b)(i) applies, the scheme manager] may, in [F6its] 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 [F7and any surviving dependants] 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 [F8its] 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[F9, any surviving dependants] 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 [F8its] discretion under paragraph (2) and in determining the amount of interim ill health payment under Schedule 2A, deem that member[F10, any such surviving dependant] 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 F11... 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; F12...

(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 F13... 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; [F14and]

[F14(c)in respect of a qualifying member who has died, to a surviving dependant of that qualifying member from the day after the day on which that qualifying member died until the day on which the surviving dependant—

(i)would have been paid, or is paid, the first instalment of an ill health payment in accordance with regulation 19, if an ill health payment were payable, or is payable, to that surviving dependant under this Part; or

(ii)dies or otherwise ceases to be entitled to an ill health payment in accordance with regulation 17A,

whichever is the earlier.]

[F15(8) 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 interim 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 interim 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.]

(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 [F16it] 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[F17, that qualifying member’s surviving dependants] or his survivor, then the total of all F18... instalments of an interim ill health pension made to or in respect of that qualifying member[F19, any surviving dependant] or his survivor is recoverable in accordance with regulation 7 of the FAS Information and Payments Regulations.]