Latest news
Government response to the consultation on the draft FAS Regulations 2012
28 May 2012
The Government published today its response to the comments received in respect of the consultation held in 2011 on the draft Financial Assistance Scheme Regulations 2012 (originally 2011). The consultation ran between 10 June and 1 September 2011.
The Government plans to introduce the regulations later this year.
Underpin benefits – appendix to the valuation guidance for Regulation 22 of the FAS Regulations 2005
28 May 2012
The Government has provided updated guidance on the treatment of underpins in FAS qualifying schemes transferring assets to government.
This additional guidance is an appendix to the existing valuation guidance.
The Pension Protection Fund
23 December 2011
Section 20 of the Pensions Act 2011 will come into force on 1 January 2012. It provides for the manner in which indexation is to be determined for pension compensation going forward.
Under the new provisions, indexation is undertaken by reference to the general level of prices determined in such manner as the Secretary of State may decide.
For the purposes of these provisions, the Secretary of State has decided that the manner in which the general level of prices is to be determined is by reference to the consumer prices index.
Updated FAS guidance on method and assumptions to use when undertaking a valuation under Regulation 22 of the Financial Assistance Scheme
25 October 2011
We have prepared updated guidance in respect of valuations in FAS schemes that are transferring assets to government. This guidance applies to schemes with a Calculation Date on or after 30 September 2010, which, on the date of publication, have not received notification of approval of their valuation by the FAS Scheme Manager.
Queries from FAS schemes should be directed initially to the Pension Protection Fund.
- Contact details for the Pension Protection Fund (Pension Protection Fund website)
The Financial Assistance Scheme Regulations 2011
10 June 2011
Today the Government published its consultation in respect of the draft Financial Assistance Scheme Regulations 2011.
These draft Regulations contain an addition to the qualification provisions and some revisions to the payment provisions for the Financial Assistance Scheme (FAS). They also provide clarification of some of the existing provisions in the regulations.
The Government has taken this opportunity to consolidate the existing 12 sets of FAS Regulations that govern FAS payments and the administration of the Scheme and to simplify the regulatory structure.
The consultation runs from 10 June 2011 until 1 September 2011.
The Pension Protection Fund
6 April 2011
The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011 come into force today.
The Regulations provide that a former spouse or civil partner of a person who is in receipt of, or is due to receive, pension compensation will be able to receive a share of that compensation.
Amongst other things, the Regulations set out the manner in which the revaluation amount is to be determined for pension compensation paid to a former spouse or civil partner (‘the transferee’) where the pension compensation comes into payment at a date after these new Regulations come into force.
Under the new Regulations, relevant revaluation is undertaken by reference to the general level of prices determined in such manner as the Secretary of State may decide.
For the purposes of these Regulations, the Secretary of State has decided that the manner in which the general level of prices is to be determined is by reference to the consumer prices index.
The Financial Assistance Scheme and Pension Protection Fund
31 March 2011
The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 and The Pension Protection Fund (Revaluation Amendments) Regulations 2011 come into force today.
The Regulations deliver some of the changes announced by the Government on 8 July 2010 that the consumer prices index (rather than the retail prices index) would be used by the Financial Assistance Scheme and the Pension Protection Fund in relation to the calculation of certain payments.
The Regulations amend provisions relating to:
- the revaluation and indexation of payments made by the Financial Assistance Scheme;
- how the cap on assistance payments will be increased going forward; and
- the revaluation of pension compensation paid by the Pension Protection Fund.
Under the Regulations, relevant increases are undertaken by reference to the general level of prices determined in such manner as the Secretary of State thinks fit. For the purpose of these regulations, the Secretary of State has decided that the manner in which the general level of prices is to be determined is by reference to the consumer prices index.
The Financial Assistance Scheme and Pension Protection Fund (Valuation, Revaluation and Indexation Amendments) Regulations 2011 – Government response to consultation on draft regulations
7 February 2011
Today we published the Government’s response to the consultation on The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011.
This response sets out the Government’s views on the points raised in relation to the consultation that ran between 12 August and 3 November 2010. The Regulations were laid before Parliament on 31 January 2011.
The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011
1 February 2011
The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 were laid before Parliament on 31 January 2011.
- The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011 (legislation.gov.uk)
The Regulations, which are subject to Parliamentary approval, will introduce changes to:
- the revaluation and indexation of FAS payments, and
- how the FAS cap is increased.
Under the Regulations references to the Retail Prices Index are replaced by references to the "general level of prices determined in such manner as the Secretary of State thinks fit". The Secretary of State will publish the manner in which the general level of prices is to be determined.
The current intention is to use the Consumer Prices Index (CPI) so that the FAS scheme manager will:
- from 31 March 2011, revalue accruals by reference to increases in the CPI, subject to the cap.
- on 1 January 2012, pay indexation based on increases in the CPI, subject to the cap.
- from 1 April 2011, increase the FAS cap in line with the CPI.
We have produced an equality impact assessment in respect of the Regulations.
We will announce when the Regulations come into force.
FAS Guidance on method and assumptions to use when undertaking a valuation under Regulation 22 of the Financial Assistance Scheme
20 September 2010
New guidance has been prepared in respect of the valuation of FAS schemes. This guidance will apply to schemes that have a calculation date on or after 30 September. For schemes that have calculation dates before 30 September 2010, the previous guidance will still apply. Scheme managers and individuals should make sure they use the correct guidance for their particular scheme. These are below:
- Financial Assistance Scheme - Guidance on method and assumptions to use when undertaking a valuation under Regulation 22 of the Financial Assistance Scheme (243KB)
- schemes with calculation dates on or after 30 September 2010 should use this guidance
- Financial Assistance Scheme - Guidance on method and assumptions to use when undertaking a valuation under Regulation 22 of the Financial Assistance Scheme (238KB) - schemes with calculation dates before 30 September 2010 should use this guidance
Consultation on the draft Financial Assistance Scheme and Pension Protection Fund (Valuation, Revaluation and Indexation Amendments) Regulations 2010
12 August 2010
On 12 August 2010 the Government published a consultation document in respect of the draft Financial Assistance Scheme and Pension Protection Fund (Valuation, Revaluation and Indexation Amendments) Regulations 2011.
On 8 July 2010, the Minister of State for Pensions, Steve Webb MP, announced that the Government intend to use the consumer prices index (CPI) for statutory minimum revaluation and indexation for occupational pension schemes and for payments made by the Pension Protection Fund (PPF) and the Financial Assistance Scheme (FAS). These draft regulations are intended to deliver some of these changes to FAS and PPF rules.
The consultation seeks views on the detail of this proposal and will end on 3 November 2010.
