PART 2Amendment of the FAS Regulations

Amendment paragraph 5 of Schedule 225

In paragraph 5 of Schedule 2 (survivors of qualifying members)—

a

in sub-paragraph (2) for “sub-paragraph (3) or (6)” substitute “sub-paragraph (3) or (6A)”;

b

for sub-paragraph (3) substitute—

(3) Except where sub-paragraph (6A) applies, the annual payment payable to a survivor shall be—

(expected pension×0.9)+H2Amath

.

c

in sub-paragraph (4) for “on the crystallisation date” substitute “on the day before the day on which the qualifying pension scheme began to be wound up”;

d

omit sub-paragraph (6);

e

after sub-paragraph (6) insert—

6A

Where the qualifying member was a party to a polygamous marriage, the annual payment payable to each survivor shall be—

(E+H)NBmath

6B

In this paragraph—

  • “A” means the actual pension;

  • “B” means the sum of the actual pensions of all the survivors of that qualifying member;

  • “E” means one half of the product of 0.9 multiplied by the expected pension which would be determined in accordance with sub-paragraph (3) if sub-paragraph (6A) did not apply;

  • “H” means the aggregate of any annual increases determined in accordance with paragraph 9 to which the qualifying member was entitled before the day on which the qualifying member died;

  • “N” means the number of survivors of that qualifying member.

6C

Where a survivor of a qualifying member who was a party to a polygamous marriage dies, the annual payment payable to each survivor of that qualifying member shall be redetermined with effect from the day after the day on which the survivor died.

f

in sub-paragraph (7)—

i

after paragraph (b) omit “and”; and

ii

after paragraph (c) add—

and

d

in any case where 14 May 2004 is later than—

i

the day on which the qualifying member died; and

ii

the day on which the qualifying pension scheme began to be wound up,

the revaluation amount for the third survivor revaluation period (see sub-paragraphs (12) and (13)).

g

for sub-paragraph (10)(b) substitute—

b

ending on—

i

the earlier of—

aa

the day from which the qualifying member became entitled to an annual payment; or

bb

the day from which the survivor of the qualifying member became entitled to an annual payment; or

ii

in any case where 14 May 2004 is later than—

aa

the day on which the qualifying member died; and

bb

the day on which the qualifying pension scheme began to be wound up,

the day on which the qualifying member died.

h

after sub-paragraph (11) add—

12

The third survivor revaluation period is the period—

a

beginning on the day after the day on which the qualifying member died; and

b

ending on 14 May 2004.

13

The revaluation amount for the third survivor revaluation period is the revaluation amount determined in accordance with paragraph 4(13A) to (13D).