PART 2 Amendment of the FAS Regulations

12 Amendment of regulation 17
In regulation 17 (annual payments)—
(a) in paragraph (4), after “applies” insert “and subject to paragraph (4C)”;
(b) after paragraph (4) insert—

“4A Except where regulation 17A(3) applies and subject to paragraph (4C), a surviving dependant of a qualifying member of a qualifying pension scheme shall be entitled to an annual payment determined in accordance with Schedule 2 from—
(a) 14th May 2004;
(b) the day after the day on which that qualifying member died; or
(c) where a surviving dependant is an unborn child on the day on which the qualifying member died, the day on which that surviving dependant is born,
whichever is the latest.
4B An annual payment payable to a surviving dependant under paragraph (4A) shall continue, subject to paragraph (5B), 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.
4C A survivor or surviving dependant of a person who is regarded as a qualifying member under regulation 15(5) is not entitled to an annual payment as a survivor or surviving dependant of that qualifying member.
4D Where an annual payment ceases to be payable to a surviving dependant as a result of paragraph (4B)(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 annual payment determined in accordance with Schedule 2 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 (4B).”

;
(c) for paragraph (5B) substitute—

“5B Where a beneficiary dies or otherwise ceases to be entitled to an annual payment—
(a) subject to sub-paragraph (b), any further instalments of an annual payment that would have been payable to that beneficiary, in respect of that year, cease to be payable;
(b) any instalment of an annual 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 annual payment shall be payable.”

; and
(d) in paragraph (6)—
(i) for “, (5B) and regulation 17C(8)” substitute “and (5B), regulation 17C(8) and paragraphs 2A and 4A of Schedule 2”; and
(ii) for “beneficiary” substitute “qualifying member or survivor”.