04 September 2007 – The Financial Assistance Scheme (Halting Annuitisation) Regulations 2007
Regulations laid today require trustees of schemes which have qualified for the Financial Assistance Scheme (FAS) to stop buying annuities for their members.
This is to support the work of the Young Review which is looking at how better use can be made of the assets in the FAS-qualifying schemes, to increase assistance further.
Annuities may still be bought where trustees had already entered into a binding agreement for their purchase, or in circumstances where the FAS scheme manager considers it appropriate for a scheme to buy annuities for its members. Applications to purchase annuities will be considered on a case-by-case basis and guidance has been issued for trustees.
Subject to Parliamentary approval, the regulations will come into force on September 26, and prevent annuities being purchased for a period of nine months from that date.
Minister for Pensions Reform Mike O’Brien said:
“The Young Review concluded that making better use of the assets in the FAS-qualifying schemes could boost financial assistance further. Options include bulk-buying annuities or pooling the available assets in one fund.
“Halting annuitisation will allow the next stage of this work to take place and we need the full cooperation of trustees to achieve this.
“The Government has committed to match any additional funds generated by the Young Review to increase FAS assistance.”
Notes to Editors
- The regulations and guidance for trustees can be viewed at www.dwp.gov.uk/fas
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