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The Financial Assistance Scheme Regulations 2005

S.I. 2005/1986 · Made 19 July 2005 · Extends to United Kingdom

Not fully up to date. 17 changes made by later legislation have not yet been written into this text, which is revised to 29 June 2026.

See the changes not yet applied
ProvisionChangeMade by
Sch. 2 para. 7(1)(b)words insertedPension Schemes Act 2026 s. 111(2)
Sch. 2 para. 9(2)words insertedPension Schemes Act 2026 s. 111(4)(a)
Sch. 2 para. 9(2)word omittedPension Schemes Act 2026 s. 111(4)(b)(i)
Sch. 2 para. 9(2)words insertedPension Schemes Act 2026 s. 111(4)(b)(ii)
Sch. 2 para. 9(2)words insertedPension Schemes Act 2026 s. 111(4)(c)
Sch. 2 para. 9(2A)-(2D)insertedPension Schemes Act 2026 s. 111(5)
Sch. 2 para. 9(3)words insertedPension Schemes Act 2026 s. 111(6)(a)
Sch. 2 para. 9(3)words substitutedPension Schemes Act 2026 s. 111(6)(b)
Sch. 2A para. 7(1)(b)words insertedPension Schemes Act 2026 s. 111(7)
Sch. 2A para. 9(2)words insertedPension Schemes Act 2026 s. 111(9)(a)
Sch. 2A para. 9(2)words insertedPension Schemes Act 2026 s. 111(9)(b)
Sch. 2A para. 9(2)words insertedPension Schemes Act 2026 s. 111(9)(c)
Sch. 2A para. 9(2)word omittedPension Schemes Act 2026 s. 111(9)(d)(i)
Sch. 2A para. 9(2)words insertedPension Schemes Act 2026 s. 111(9)(d)(ii)
Sch. 2A para. 9(2A)-(2D)insertedPension Schemes Act 2026 s. 111(10)
Sch. 2A para. 9(3)words insertedPension Schemes Act 2026 s. 111(11)(a)
Sch. 2A para. 9(3)words substitutedPension Schemes Act 2026 s. 111(11)(b)

PENSIONS

Made 19th July 2005

Coming into force in accordance with regulation 1

M1Whereas a draft of this instrument was laid before Parliament in accordance with section 316(2)(n) of the Pensions Act 2004 and approved by resolution of each House of Parliament;

Now, therefore, the Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by sections 286, 315(2) and 318(1), (4)(a) and (5) of that Act M2, and of all other powers enabling him in that behalf, hereby makes the following Regulations:C1C2C3C4

Annotations to the whole text

Marginal citations

M1

2004 c. 35.

M2

Section 286 is modified in relation to multi-employer schemes by S.I.2005/441. Section 318(1) is cited because of the meaning ascribed to the words “modifications”, “prescribed” and “regulations”.

Modifications

C1

Instrument applied (with modifications) (21.2.2009) by The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009 (S.I. 2009/317), arts. 1, 3, Sch.

C2

Instrument applied (with modifications) (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 1, Sch. 6 Pt. 1 (with reg. 27(a))

C3

Instrument applied (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 72(3) (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c 19 - see S.I. 2014/1683, art. 2

C4

Regulations applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), reg. 2, Sch. 3 paras. 2, 3 (with reg. 5); (as amended (4.1.2024) by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), regs. 1(2), 4)

Contents

  1. Part 1: GENERAL
  2. 1Citation, commencement and extent
  3. 2Interpretation
  4. 3Commencement of winding up
  5. 4Application of Parts 1 and 2 of the Act
  6. Part 2: ESTABLISHMENT OF THE FINANCIAL ASSISTANCE SCHEME
  7. 5Scheme manager
  8. 5AFunctions of the Board of the Pension Protection Fund in relation to the financial assistance scheme Repealed
  9. 6Financial and other arrangements to enable or assist the Board of the Pension Protection Fund to carry out its functions in relation to the financial assistance scheme
  10. 6AUse of information
  11. 7Annual reports Repealed
  12. 8Delegation Repealed
  13. Part 3: QUALIFYING PENSION SCHEMES
  14. 9Qualifying pension schemes
  15. 10Other schemes which are not qualifying pension schemes
  16. 11Condition to be satisfied by employer
  17. 12Condition to be satisfied: multi-employer schemes
  18. 12AEmployer-related condition
  19. 12BEmployer-related condition: multi-employer schemes
  20. 13Insolvency events
  21. 14Notification of details
  22. 14AWorking with qualifying pension schemes
  23. 14BPayments in relation to administration or other costs
  24. Part 4: QUALIFYING MEMBERS
  25. 15Qualifying members
  26. 15AQualifying members for the purposes of section 286A Repealed
  27. 16Insufficient assets Repealed
  28. 16ASurvivors
  29. 16BSurviving dependants
  30. Part 5: ANNUAL AND INITIAL PAYMENTS
  31. 17Annual payments
  32. 17AIll health payments
  33. 17AAMeaning of “the FAS cap”
  34. 17BInterim ill health payments
  35. 17CAnnual payments for certain applications in cases of severe ill health
  36. 17DLump sum payments
  37. 17ERedetermination of an annual payment previously determined in accordance with Schedule 4
  38. 17FRedetermination of an ill health payment previously determined in accordance with Schedule 6
  39. 17GPayments to beneficiaries other than qualifying members, survivors and surviving dependants
  40. 17HPayments to qualifying members receiving a pension from the qualifying pension scheme before entitlement to an annual payment or ill health payment
  41. 18Initial payments
  42. 18ADeath benefit guarantees
  43. Part 6: ADMINISTRATION OF PAYMENTS
  44. 19Time and manner of payment: general provisions
  45. 20Direct credit transfer
  46. Part 7: Valuation of assets and liabilities
  47. 21Application of this Part
  48. 22Scheme manager to obtain a valuation of assets and liabilities
  49. 23Valuation of assets
  50. 24Power of the scheme manager to determine the value of an asset
  51. 25Approval of valuation
  52. 26Binding valuation
  53. Part 8: Scheme manager functions after a valuation
  54. 27Scheme manager calculations after a valuation
  55. 28Determination of certain asset shares, notional pensions and survivor notional pensions
  56. 29Transfer notice
  57. 30Terms and conditions of contracts
  58. Part 9: Miscellaneous payments and residual assets
  59. 31Payments where amounts relating to money purchase benefits are transferred to the Secretary of State
  60. 32Payments to estates where a person in receipt of a payment from a scheme dies prior to entitlement and prior to transfer of assets
  61. 33Transfer of residual assets to the Secretary of State where Part 7 does not apply
  62. Signature
  63. Schedule 1: MODIFICATION OF CERTAIN PROVISIONS OF PARTS 1 AND 2 OF THE ACT
  64. 1Paragraph 1
  65. 2Paragraph 2
  66. 3Paragraph 3
  67. 3ZAParagraph 3ZA
  68. 3ZBParagraph 3ZB
  69. 3ZCParagraph 3ZC
  70. 3ZDParagraph 3ZD
  71. 3ZEParagraph 3ZE
  72. 3AParagraph 3A
  73. 3BParagraph 3B
  74. 3CParagraph 3C
  75. 3DParagraph 3D
  76. 3EParagraph 3E
  77. 4Paragraph 4
  78. 5Paragraph 5
  79. 6Paragraph 6
  80. 7Paragraph 7
  81. 8Paragraph 8
  82. 9Paragraph 9
  83. 10Paragraph 10
  84. 11Paragraph 11
  85. 12Paragraph 12
  86. 13Paragraph 13
  87. 14Paragraph 14
  88. 14AParagraph 14A
  89. 15Paragraph 15
  90. 16Paragraph 16
  91. 17Paragraph 17
  92. 18Paragraph 18
  93. 19Paragraph 19
  94. Schedule 2: DETERMINATION OF ANNUAL AND INITIAL PAYMENTS
  95. 1Introductory
  96. 2Actual pension
  97. 2AAnnual redetermination
  98. 3Qualifying members receiving pensions from the qualifying pension scheme
  99. 4Active and deferred members
  100. 4ABridging pensions
  101. 4BPension payable at an age other than normal retirement age
  102. 5Survivors of qualifying members
  103. 5APayment for an entitlement under regulation 17C
  104. 5BSurviving dependants of qualifying members
  105. 6Exclusion of certain benefits
  106. 7Cap on expected pension and actual pension
  107. 8De minimis rule Repealed
  108. 9Annual increase to an annual payment
  109. 10Initial payments
  110. 10AShared initial payments
  111. 11Rounding
  112. Schedule 2A: DETERMINATION OF ILL HEALTH AND INTERIM ILL HEALTH PAYMENTS
  113. 1Introductory
  114. 2Amount of an ill health payment
  115. 2AAmount of an ill health payment to a surviving dependant
  116. 3Amount of an interim ill health payment
  117. 3AAmount of an interim ill health payment for a surviving dependant
  118. 4Revaluation Repealed
  119. 5Actuarial reduction
  120. 6Modifications to Schedule 2
  121. 7Cap on expected pension and actual pension
  122. 8Rounding
  123. 9Annual increase to an ill health payment
  124. 10Annual redetermination
  125. 11Bridging pensions
  126. Schedule 3: Determination of certain annual payments
  127. 1Introductory
  128. 2Amount of an annual payment – qualifying members
  129. 3Amount of an annual payment - survivors
  130. 4Surviving Dependants
  131. 5Rounding
  132. 6Annual increases to an annual payment
  133. Schedule 4: Determination of annual payments where a present payment was being received on the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010
  134. 1Introductory
  135. 2Qualifying members
  136. 3Survivors
  137. 4Surviving Dependants
  138. 5Redetermination
  139. 6Rounding
  140. 7Annual increases to an annual payment
  141. Schedule 5: Determination of certain ill health payments
  142. 1Introductory
  143. 2Amount of an ill health payment – qualifying members
  144. 3Amount of an ill health payment - survivors
  145. 4Amount of an ill health payment - surviving dependants
  146. 5Rounding
  147. 6Annual increases to an ill health payment
  148. Schedule 6: Determination of ill health payments where a present payment was being received on the coming into force of the Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010
  149. 1Introductory
  150. 2Qualifying members
  151. 3Survivors
  152. 4Surviving Dependants
  153. 5Redetermination
  154. 6Rounding
  155. 7Annual increases to an ill health payment
  156. Schedule 7: Determination of payments to early retirees and other beneficiaries
  157. 1Introductory
  158. 2Amount of the payment where regulation 17G applies
  159. 3Amount of the payment where regulation 17H applies
  160. 4Annual increases
  161. Explanatory note