The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2007

Amendment of Schedule 2 (determination of annual and initial payments)

7.—(1) In paragraph 1(2) of Schedule 2 (determination of annual and initial payments), omit the definitions of “Group 1 qualifying member”, “Group 2 qualifying member” and “Group 3 qualifying member”.

(2) After paragraph 1(3), insert—

“(4) In this Schedule, “normal retirement age” means, subject to sub-paragraph (5), in relation to a member of an occupational pension scheme, the age specified in the rules of that scheme at which that member will normally retire.

(5) Where the normal retirement age—

(a)determined in accordance with sub-paragraph (4) is more than 65, that age shall be 65;

(b)cannot be determined in accordance with sub-paragraph (4) from the rules of the qualifying pension scheme, that age shall be such age as the scheme manager shall determine having regard to the rules of that scheme and to such other information as he considers relevant.”.

(3) In paragraph 2—

(a)in sub-paragraph (3)(c), omit “and increases in the annual rate of annuity in payment”; and

(b)after sub-paragraph (4), add—

“(5) Where the scheme manager is satisfied that increases have been, are being, or will be made to the annual rate of annuity, and he considers that those increases are not reasonable, he may determine the annual rate of annuity on the basis of the sum which would discharge the liability of the scheme to the beneficiary and of such other matters as he considers relevant.”.

(4) In paragraph 3—

(a)for sub-paragraph (1) substitute—

“(1) This paragraph applies to—

(a)a member or former member of a qualifying scheme who—

(i)is a qualifying member under regulation 15(1), and

(ii)was entitled to present payment of a pension under the scheme rules on the crystallisation date; and

(b)a person who is regarded as a qualifying member under regulation 15(5).”; and

(b)for sub-paragraph (2) substitute—

“(2) The annual payment payable to a qualifying member to whom this paragraph applies shall be—

”.

(5) In paragraph 4, for sub-paragraph (2) substitute—

“(2) The annual payment payable to a qualifying member to whom this paragraph applies shall be—

”.

(6) In paragraph 5, for sub-paragraph (3) substitute—

“(3) Where the qualifying member dies before the date on which the liabilities of the scheme in respect of that member are discharged (whether by entry into an annuity contract or by other means), the annual payment payable to his survivor shall be—

”.

(7) In paragraph 7—

(a)in sub-paragraph (1), omit from “(where the qualifying member is a Group 1 qualifying member” to “is a Group 3 qualifying member),”;

(b)in sub-paragraph (2)(a), omit from “(where the qualifying member is a Group 1 qualifying member” to “is a Group 3 qualifying member”; and

(c)for “£12,000”, in each place that it occurs, substitute “£26,000”.

(8) Omit paragraph 8.

(9) In paragraph 10—

(a)in sub-paragraph (a), in sub-paragraph (2)(a) of the substituted paragraph (2), for “no such communication” substitute “no such commutation”;

(b)after sub-paragraph (b), insert—

“(ba)for “regulation 17”, in each place, substitute “regulation 18”;”;

(c)omit sub-paragraphs (c) and (ca); and

(d)for sub-paragraph (e) substitute—

“(e)in paragraph 5—

(i)for sub-paragraph (3) substitute—

“(3) The initial payment payable to a survivor of a qualifying member shall be—

”; and

(ii)omit sub-paragraphs (2) and (6).”.