Section 111 Financial Assistance Scheme: indexation of payments for pre-1997 serviceI1

England, Wales and Scotland Not yet in force

(1)

The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986) are amended as follows.

(2)

In paragraph 7(1)(b) of Schedule 2 (determination of annual and initial payments), after “(b)(i)” insert “, (ia) and (ib)”.

(3)

Paragraph 9 of that Schedule is amended in accordance with subsections (4) to (6).

(4)

In sub-paragraph (2)—

(a)

in paragraph (a) of the definition of “underlying rate”, after sub-paragraph (i) insert—

“(ia)

where sub-paragraph (2A) applies, the product of X multiplied by so much of the expected pension as is attributable to pre-1997 service;

(ib)

where sub-paragraph (2B) applies, the product of X multiplied by the relevant percentage of so much of the expected pension as is attributable to pre-1997 service;”;

(b)

in paragraph (b) of the definition of “underlying rate”—

(i)

omit the “and” at the end of sub-paragraph (i);

(ii)

after that sub-paragraph insert—

“(ia)

where sub-paragraph (2A) applies, so much of the expected pension as is, proportionally, attributable to pre-1997 service;

(ib)

where sub-paragraph (2B) applies, the relevant percentage of so much of the expected pension as is, proportionally, attributable to pre-1997 service; and”;

(c)

after the definition of “post-1997 service” insert—

““pre-1997 service” means—

(a)

pensionable service (whether actual or notional) which occurs before 6th April 1997; or

(b)

where the annual payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred before 6th April 1997;

“relevant percentage” means such percentage as may be determined by the Secretary of State;”.

(5)

After sub-paragraph (2) insert—

“(2A)

This sub-paragraph applies where, immediately before the qualifying pension scheme began to wind up—

(a)

the scheme rules included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,

(b)

that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and

(c)

that requirement applied in relation to pre-1997 service in respect of which the annual payment is payable.

(2B)

This sub-paragraph applies where—

(a)

the qualifying pension scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,

(b)

that accrual was in relation to GMP indexed service in respect of which the annual payment is payable, and

(c)

sub-paragraph (2A) does not apply.

(2C)

For the purposes of sub-paragraphs (2A) and (2B)—

(a)

in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, the scheme rules included a requirement of the kind mentioned in sub-paragraph (2A)(a), those sub-paragraphs have effect as if the scheme included such a requirement;

(b)

in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, a requirement of the scheme of a kind mentioned in sub-paragraph (2A)(a) (including such a requirement included by virtue of paragraph (a)) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;

(c)

in any case where it is unclear to the scheme manager whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;

(d)

in any case where it is unclear to the scheme manager whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph (c)) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.

(2D)

In sub-paragraphs (2A) to (2C)—

“GMP equalisation obligation” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;

“GMP indexation period” means the period beginning with 6 April 1988 and ending with 5 April 1997;

“GMP indexed service” means—

(a)

pensionable service (whether actual or notional) which occurs during the GMP indexation period; or

(b)

where the annual payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred during the GMP indexation period.”

(6)

In sub-paragraph (3)—

(a)

after “attributable to” insert “pre-1997 service or”;

(b)

for “that amount” substitute “the amount in question”.

(7)

In paragraph 7(1)(b) of Schedule 2A (determination of ill health and interim ill health payments), after “(b)(i)” insert “, (ia) and (ib)”.

(8)

Paragraph 9 of that Schedule is amended in accordance with subsections (9) to (11).

(9)

In sub-paragraph (2)—

(a)

after the definition of “E” insert—

““EA” means so much of the expected pension as is attributable to pre-1997 service;

“EB” means the relevant percentage of so much of the expected pension as is attributable to pre-1997 service;”;

(b)

after the definition of “post-1997 service” insert—

““pre-1997 service” means—

(a)

pensionable service (whether actual or notional) which occurs before 6th April 1997; or

(b)

where the ill health payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred before 6th April 1997;

“relevant percentage” means such percentage as may be determined by the Secretary of State;”;

(c)

in paragraph (a) of the definition of “underlying rate”, after sub-paragraph (i) insert—

“(ia)

where sub-paragraph (2A) applies, the product of X multiplied by (C x EA);

(ib)

where sub-paragraph (2B) applies, the product of X multiplied by (C x EB);”;

(d)

in paragraph (b) of the definition of “underlying rate”—

(i)

omit the “and” at the end of sub-paragraph (i);

(ii)

after that sub-paragraph insert—

“(ia)

where sub-paragraph (2A) applies, so much of the amount “A” for the purposes of paragraph 2 as is, proportionately, attributable to pre-1997 service;

(ib)

where sub-paragraph (2B) applies, the relevant percentage of so much of the amount “A” for the purposes of paragraph 2 as is, proportionately, attributable to pre-1997 service; and”.

(10)

After sub-paragraph (2) insert—

“(2A)

This sub-paragraph applies where immediately before the qualifying pension scheme began to wind up—

(a)

the scheme rules included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,

(b)

that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and

(c)

that requirement applied in relation to pre-1997 service in respect of which the ill health payment is payable.

(2B)

This sub-paragraph applies where—

(a)

the qualifying pension scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,

(b)

that accrual was in relation to GMP indexed service in respect of which the ill health payment is payable, and

(c)

sub-paragraph (2A) does not apply.

(2C)

For the purposes of sub-paragraphs (2A) and (2B)—

(a)

in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, the scheme rules included a requirement of the kind mentioned in sub-paragraph (2A)(a), those sub-paragraphs have effect as if the scheme included such a requirement;

(b)

in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, a requirement of the scheme of a kind mentioned in sub-paragraph (2A)(a) (including such a requirement included by virtue of paragraph (a)) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;

(c)

in any case where it is unclear to the scheme manager whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;

(d)

in any case where it is unclear to the scheme manager whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph (c)) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.

(2D)

In sub-paragraphs (2A) to (2C)—

“GMP equalisation obligation” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;

“GMP indexation period” means the period beginning with 6 April 1988 and ending with 5 April 1997;

“GMP indexed service” means—

(a)

pensionable service (whether actual or notional) which occurs during the GMP indexation period; or

(b)

where the ill health payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred during the GMP indexation period;

“guaranteed minimum pension” has the meaning given in section 8(2) of the 1993 Act.”

(11)

In sub-paragraph (3)—

(a)

after “attributable to” insert “pre-1997 service or”;

(b)

for “that amount” substitute “the amount in question”.

Annotations

Commencement

I1: S. 111 not in force at Royal Assent, see s. 133(9)