The Financial Assistance Scheme Regulations 2005

Cap on expected pension and actual pension U.K.

7.— [F1 (1) Where the amount of a qualifying member’s expected pension determined in accordance with the previous provisions of this Schedule multiplied by 0.9 exceeds the FAS cap—

(a) the amount of the annual payment payable to, or in respect of, that member under paragraphs 3 to 5B shall be determined on the basis that the product of that calculation was the amount of the FAS cap; and

(b) the expected pension for the purposes of paragraph (b)(i) in the definition of “underlying rate” in paragraph 9 shall be the amount of the FAS cap;]

(2) Where the amount of a qualifying member's actual pension determined in accordance with paragraph 2 exceeds—

(a) the amount of a qualifying member's expected pension determined in accordance with the previous provisions of this Schedule multiplied by [F2 0.9] F3 ...; or

(b) [F4 the FAS cap],

no annual payment shall be payable to, or in respect of, that member.

[F5 (3) Except where sub-paragraph (5) applies, in this paragraph “the FAS cap” is—

(a) where the beneficiary became entitled to an annual payment before 1st April 2007, £26,000;

(b) where the beneficiary became entitled to an annual payment in the period beginning on 1st April 2007 and ending on 31st March 2008, £26,936;

(c) where the beneficiary became entitled to an annual payment in the period beginning on 1st April 2008 and ending on 31st March 2009, £27,987;

(d) where the beneficiary became entitled, or becomes entitled, to an annual payment in the period beginning on 1st April 2009 and ending on 31st March 2010, £29,386; F6 ...

[F7 (e) where the beneficiary becomes entitled to an annual payment in the period beginning on 1st April 2010 and ending on 31st March 2011, £29,386; and

(f) where the beneficiary becomes entitled to an annual payment after 31st March 2011, the amount determined in accordance with sub-paragraph (4).]

(4) For each successive period of 12 months from [F8 1st April 2011], the FAS cap shall be—

(a) where paragraph (b) does not apply, the amount of the FAS cap for the previous period of 12 months increased by the percentage increase [F9 in the general level of prices] for the period of 12 months ending on the 30th September falling within that previous period of 12 months; or

(b) where there is no such percentage increase, the amount of the FAS cap for the previous period of 12 months.

(5) Where a qualifying member dies on or after the day on which that qualifying member became entitled to an annual payment, “the FAS cap” for the purposes of determining the amount of the annual payment payable to a survivor or a surviving dependant of that qualifying member under paragraph 5 or 5B is the amount which was determined in accordance with sub-paragraph (3) for the purposes of determining the amount of the annual payment payable to that qualifying member.

(6) Where the amount of the FAS cap determined in accordance with sub-paragraph (3)(e) results in a fraction of a pound, that fraction shall be treated as a pound.]

Textual Amendments

F1 Sch. 2 para. 7(1) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 27(a) (with reg. 37)

F2 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)

F3 Words in Sch. 2 para. 7(2)(a) omitted (19.12.2007) by virtue of The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/3581), regs. 1(1), 7(7)(b)

F4 Words in Sch. 2 para. 7(2) substituted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 27(b) (with reg. 37)

F5 Sch. 2 para. 7(3)-(6) inserted (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 27(c) (with reg. 37)

F6 Word in Sch. 2 para. 7(3)(d) omitted (31.3.2011) by virtue of The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 10(a)(i)

F7 Sch. 2 para. 7(3)(e)(f) substituted for Sch. 2 (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 10(a)(ii)

F8 Words in Sch. 2 para. 7(4) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 10(b)(i)

F9 Words in Sch. 2 para. 7(4) substituted (31.3.2011) by The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (S.I. 2011/839), regs. 1(1), 10(b)(ii)