Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986, as amended) (“the FAS Regulations”) which allow for payments to be made to, or in respect of, certain members or former members of certain occupational pension schemes where the liabilities of the scheme to those members are unlikely or unable to be satisfied in full.

They also amend the Financial Assistance Scheme (Provision of Information and Administration of Payments) Regulations 2005 (S.I. 2005/2189, as amended), the Financial Assistance Scheme (Internal Review) Regulations 2005 (S.I. 2005/1994, as amended), the Financial Assistance Scheme (Appeals) Regulations (S.I. 2005/3273, as amended) and the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 (S.I. 2008/1432) in relation to the financial assistance scheme (“the FAS”).

Part 2 amends the FAS Regulations. In particular it—

(a)

confers the function of managing the FAS (being “the scheme manager”) on the Board of the Pension Protection Fund and makes related provision, including provision as to financial arrangements;

(b)

makes provision for certain information held to be disclosed to or by the scheme manager;

(c)

provides a discretion for the scheme manager to make payments in respect of qualifying pension schemes to enable or assist the payment of administration or other costs relating to those schemes;

(d)

makes changes to the way in which the FAS payments are calculated—

(i)

to take account of any changes in any annuity purchased for, or in respect of, a qualifying member;

(ii)

to take account of bridging pensions and pension payable at ages other than the normal retirement age;

(iii)

to change provisions relating to the FAS cap; and

(iv)

to provide for an annual increase to the payments in respect of any pensionable service after 6 April 1997;

(e)

makes provision for payments to surviving dependants of qualifying members, amends the definition of survivor to extend survivor payments to surviving partners of the qualifying member and makes specific provision in relation to survivors of a qualifying member who is a party to a polygamous marriage; and

(f)

makes certain changes to the administration of the FAS, for example provision so that FAS payments can be paid in instalments other than monthly instalments and provisions to enable the scheme manager to delegate certain functions to another person.

Part 3 amends the Financial Assistance Scheme (Provision of Information and Administration of Payments) Regulations 2005. In particular it amends the information which must be provided to the scheme manager (or to a person authorised by the scheme manager) to support the changes being made to the FAS.

Part 4 amends the Financial Assistance Scheme (Internal Review) Regulations 2005 and the Financial Assistance Scheme (Appeals) Regulations 2005 in order to make provision for the internal review and appeal of certain decisions relating to surviving dependants and to make provision for the representation of children aged under 18.

Part 5 amends the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008 to omit the transitional provisions.

Part 6 makes certain transitional provisions relating to reporting requirements and payments to those already receiving certain payments under the FAS. The provisions carry forward the provisions omitted from the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2008.

Before making these Regulations the Secretary of State consulted such persons as he considers appropriate.

An impact assessment has not been published for this instrument as it has only a negligible impact on business, charities and voluntary bodies.