FAS news archive 2006
Financial Assistance Scheme (Miscellaneous Amendments) regulations laid in Parliament
The Financial Assistance Scheme (Miscellaneous Amendments) regulations 2006 (137KB) 
bring into force the extension to the FAS announced in May's white paper 'Security in Retirement'. The Government published the draft regulations for consultation in July and our response can be found here (58KB) .
Minister presents findings of the Review of the Administration of the Financial Assistance Scheme to Parliament
On 6 June the Minister of State for Pensions Reform, James Purnell, announced details of the review of the administration of the Financial Assistance Scheme (FAS).
The review looked at what can be done to provide the best administration and management for the Scheme to ensure all eligible people receive payments as quickly as possible. The review also considered how to ensure the most cost effective operation of the Scheme and a full range of options for its organisational location.
The Minister of State for Pensions Reform informed Parliament of the outcome of the review (118KB) on 24 July.
Financial Assistance Scheme Annual Report Published
The Secretary of State for Work and Pensions, acting in his capacity as Scheme Manager of the Financial Assistance Scheme, has laid the Scheme’s first annual report before parliament. The annual report covers the period from 1 September 2005 (when the Scheme opened for business) to the 31 March 2006. Read the report (36KB)
The Minister for Pension Reform has also written to MPs giving details of the planned review of the administration of the Financial Assistance Scheme which was announced by the Secretary of State on 25 May 2006. The review will look at options for providing the best administration and management support to ensure all eligible people receive payments as quickly as possible. The review will report before the end of July. Trustees should continue to deal with the FAS Operational Unit as normal.
Government announces extension to Financial Assistance Scheme
As part of the Government's white paper, "Security in Retirement: towards a new pension system", we have announced that we intend to extend eligibility for the Financial Assistance Scheme (FAS) to members of qualifying pension schemes who were within 15 years of their scheme pension age on 14 May 2004. FAS will now help around 40,000 people who have lost their pension because their scheme wound under-funded and their employer was unable to make up the shortfall.
Members who were up to 7 years from their scheme pension age will be considered for a top-up to around 80% of their expected pension. Those between 7 and 15 years from scheme pension age who can most reasonably be expected to supplement their retirement income will be considered for a top-up to around 65% of their expected pension if they are between 7 and 11 years from scheme pension age, and 50% between 12 and 15 years.
This means that all eligible members with scheme pension ages of 65 who reach age 65 up to May 2019 will be considered for assistance, whilst those with scheme pension ages of 60 will be considered up to 2024.
The full white paper can be accessed at www.dwp.gov.uk/pensionsreform.
Important information for Members of Qualifying Pension Schemes
What happens once a scheme has Qualified for FAS
All schemes that have successfully Qualified for FAS are displayed on the Qualifying Pension Schemes list.
The next stage of the process is to determine the eligibility of individual scheme members for payments from the FAS.
If you are a member of a scheme that has been included within the Qualifying Pension Schemes list, one of the following two scenarios will apply to you:
- You are a member of a Qualifying scheme that is currently winding-up
- You are a member of a Qualifying scheme that has completed wind-up
Follow the link that applies to you to find out more.
Announcement of consultation on the draft Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2006
The Minister of State for Pensions Reform, James Purnell MP, announced the publication of the draft Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2006 (206KB) . These regulations will bring into effect the extension to the Financial Assistance Scheme announced in the white paper on pension reform on 25 May as well as other proposed changes.
A Ministerial Statement by Stephen Timms, The Minister of State for Pensions Reform.
“The general notification period for the Financial Assistance Scheme ends on 28 February. The notification period began on 1 September and is the period during which the scheme manager must be supplied with some basic details of potentially eligible pension schemes in order for them to be considered for qualification. The scheme manager may, at his discretion, accept notification of those details for any particular scheme after 28 February.
Although FAS offers help to those pension schemes which began winding-up between 1 January 1997 and 5 April 2005 where the principal employer became insolvent on or before 28 February, extending the notification period for any particular scheme also extends the period in which an insolvency event can occur. This means it may be possible for some pension schemes which would not otherwise qualify for FAS or for compensation offered under the Pension Protection Fund to become qualifying schemes for FAS. I wish to make it clear that we may be able to extend help to some individual pension scheme members who have lost part or all of their occupational pensions but who may not have appeared eligible for help from either FAS or the PPF.
The Government will set a definitive cut-off date for insolvency events before the end of the calendar year. Until then the scheme manager will consider requests for an extension to the notification period from those pension schemes that undergo a qualifying insolvency event after 28 February.”
Note: this is the text of a written Ministerial Statement laid in the House of Commons on 16 February 2006.