The Financial Assistance Scheme (Revaluation and Indexation Amendments) Regulations 2011

Amendment of Schedule 2

7.  In paragraph 4 of Schedule 2—

(a) in each place in which it occurs omit “in Great Britain”;

(b) in sub-paragraph (3)(c) for “sub-paragraphs (7) to (11)” substitute “sub-paragraphs (7) to (10) and (11)”;

(c) after sub-paragraph (3)(c) insert—

“(ca) in any case where the day—

(i) on which the qualifying member attains normal retirement age; or

(ii) from which the qualifying member becomes entitled to an annual payment in accordance with regulation 17(2), (3) or (3C) or 17C,

is on or after 31st March 2011, the revaluation amount for the third revaluation period (see sub-paragraphs (10A) and (11)); and”;

(d) in sub-paragraph (3)(d) for “third” substitute “fourth”;

(e) in sub-paragraph (7)—

(i) at the end of paragraph (b)(ii) insert—

“; or

(iii) 30th March 2011,”; and

(ii) for “earlier” substitute “earliest”;

(f) after sub-paragraph (7) insert—

“(7A) The third revaluation period is the period beginning on 31st March 2011 and ending on—

(a) the day on which the qualifying member attains normal retirement age; or

(b) the day from which the qualifying member is entitled to an annual payment in accordance with regulation 17(2), (3) or (3C) or 17C,

whichever is the earlier.”;

(g) in sub-paragraph (8)—

(i) for “second revaluation period” substitute “second and third revaluation periods”; and

(ii) for paragraph (a) substitute—

“(a) where the period—

(i) determined in accordance with sub-paragraph (7) where sub-paragraph (3)(ca) does not apply; or

(ii) covered by the second and third revaluation periods where sub-paragraph (3)(ca) applies,

is a period of less than one month, nil; or”;

(h) in sub-paragraph (9) for paragraph (a) substitute—

“(a) the percentage increase in the general level of prices during the second revaluation period or, where sub-paragraph (3)(ca) applies, the second and third revaluation periods determined in accordance with sub-paragraphs (7) and (7A) respectively; and”;

(i) in sub-paragraph (10) for “day from which the qualifying member is entitled to an annual payment” substitute “last day of the revaluation period”;

(j) after sub-paragraph (10) insert—

“(10A) The method for determining the percentage increase in the general level of prices during the third revaluation period is—

where—

(a)

A is the general level of prices for the month which falls two months before the month in which the day on which the qualifying member is entitled to an annual payment falls; and

(b)

B is the general level of prices for January 2011.”;

(k) for sub-paragraph (11) substitute—

“(11) In sub-paragraph (9)(b), “the maximum revaluation rate” in relation to the second and third revaluation periods is—

(a) 5% if either—

(i) sub-paragraph (3)(ca) does not apply and the period referred to in sub-paragraph (c) is a period of 12 months; or

(ii) sub-paragraph (3)(ca) applies and the periods referred to in sub-paragraph (3)(c) and (ca) together form a period of 12 months; or

(b) in any other case, the percentage that would be the percentage mentioned in sub-paragraph (9)(a) had the general level of prices, whether determined in accordance with sub-paragraph (10) or (10A), increased at the rate of 5% compound per annum during those periods.”;

(l) in sub-paragraph (12) after “second” insert “or third”;

(m) in sub-paragraph (13) for “third” substitute “fourth”; and

(n) in sub-paragraph (13A) for “third” substitute “fourth”.