The Financial Assistance Scheme Regulations 2005

Survivors of qualifying members U.K.

5.— [F1 (1) This paragraph applies where—

(a) immediately before a qualifying pension scheme began to wind up, a qualifying member—

(i) was entitled to present payment of a pension under the scheme rules and that pension was attributable—

(aa) to the member’s pensionable service; or

(bb) (directly or indirectly) to a pension credit to which the member became entitled under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 (creation of pension debits and credits); or

(ii) was an active member or a deferred member of that scheme;

(b) that member dies on or after the day on which the scheme began to wind up; and

(c) that member—

(i) was entitled to an annual payment determined in accordance with this Schedule, or

(ii) would have been entitled to such an annual payment had he not died before he became so entitled.]

(2) The annual payment payable to the survivor of a qualifying member to whom this paragraph applies shall be determined in accordance with sub-paragraph (3) or (6).

[F2 (3) Where the qualifying member dies before the date on which the liabilities of the scheme in respect of that member are discharged (whether by entry into an annuity contract or by other means), the annual payment payable to his survivor shall be—

F3 ]

(4) In sub-paragraph (3), “expected pension” shall, subject to sub-paragraph (5), be determined—

(a) where the qualifying member was entitled to present payment of a pension under the scheme rules [F4 on the crystallisation date] in accordance with paragraph 3(3); or

(b) where the qualifying member was an active member or a deferred member of a qualifying pension scheme [F4 on the crystallisation date] in accordance with [F5 sub-paragraph (7)].

(5) In any case where the scheme manager is satisfied that it is not possible for him to identify either or both elements of the formula in sub-paragraph (3), he may determine how the annual payment is to be calculated having regard to the scheme rules and such other matters as he considers relevant.

(6) Where the qualifying member dies [F6 on or after the date on which the liabilities of the scheme in respect of that member were discharged], the annual payment payable to his survivor shall be—

(a) one-half of the annual payment which was payable to that member in accordance with paragraph 3 or 4 immediately before his death; or

(b) where the annual payment was not payable to that member immediately before his death, one-half of the annual payment which would have been payable to him in accordance with [F7 paragraph 3 or 4 if—

(i) he had attained [F8 normal retirement age] before his death; or

(ii) he had not attained that age, but the scheme manager, after being notified that the qualifying member was terminally ill, was satisfied as to that fact.]

[F9 (7) For the purposes of sub-paragraph (4)(b), “expected pension” means the aggregate amount of—

(a) the amount specified in paragraph 4(3)(a);

(b) the revaluation amount for the first survivor revaluation period (see sub-paragraphs (8) and (9)); and

(c) the revaluation amount for the second survivor revaluation period (see sub-paragraphs (10) and (11)).

(8) The first survivor revaluation period is the period—

(a) beginning on the day on which the qualifying member’s pensionable service ended; and

(b) ending on—

(i) the day before the day on which the scheme began to wind up;

(ii) the day from which the qualifying member became entitled to an annual payment in accordance with regulation 17(2) or (3); or

(iii) the day from which the survivor of the qualifying member became entitled to an annual payment under regulation 17(4),

whichever is the earliest.

(9) The revaluation amount for the first survivor revaluation period is the revaluation amount determined in accordance with paragraph 4(6).

(10) The second survivor revaluation period is the period—

(a) beginning on the day after the date determined in accordance with sub-paragraph (8)(b); and

(b) ending on—

(i) the day from which the qualifying member became entitled to an annual payment in accordance with regulation 17(2) or (3); or

(ii) the day from which the survivor of the qualifying member became entitled to an annual payment under regulation 17(4),

whichever is the earlier.

(11) The revaluation amount for the second survivor revaluation period is the revaluation amount determined in accordance with paragraph 4(8) to (12).]

Textual Amendments

F1 Sch. 2 para. 5(1) substituted (16.12.2006) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/3370), regs. 1(1), 7(5)(a)

F2 Sch. 2 para. 5(3) substituted (19.12.2007) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/3581), regs. 1(1), 7(6)

F3 Word in Sch. 2 substituted (4.6.2008) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432), regs. 1, 7(2) (with reg. 8)

F4 Words in Sch. 2 para. 5(4) substituted (16.12.2006) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/3370), regs. 1(1), 7(5)(c)

F5 Words in Sch. 2 para. 5(4)(b) substituted (4.6.2008) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432), regs. 1, 7(5)(a) (with reg. 8)

F6 Words in Sch. 2 para. 5(6) substituted (16.12.2006) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/3370), regs. 1(1), 7(5)(d)

F7 Words in Sch. 2 para. 5(6)(b) substituted (24.11.2005) by The Financial Assistance Scheme (Modifications and Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3256), regs. 1(1), 4(6)(c)

F8 Words in Sch. 2 para. 5(6)(b)(i) substituted (4.6.2008) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432), regs. 1, 7(5)(b) (with reg. 8)

F9 Sch. 2 para. 5(7)-(11) inserted (4.6.2008) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432), regs. 1, 7(5)(c) (with reg. 8)