The Financial Assistance Scheme Regulations 2005

Initial payments

18.—(1) This regulation applies where—

(a) a qualifying pension scheme is winding up; and

(b) a qualifying member of that scheme—

(i) has attained the age of 64; or

(ii) has not attained that age but the scheme manager is satisfied that that member is terminally ill within the meaning given in section 66(2)(a) of the Social Security Contributions and Benefits Act 1992.

(2) Where this regulation applies, the trustees or managers of the scheme may make a written request to the scheme manager for a payment to be made to that qualifying member (“an initial payment”).

(3) On receipt of a request for an initial payment, the scheme manager may, in his discretion, make an initial payment to the qualifying member from the day on which—

(a) the member attains the age of 65; or

(b) if earlier, it is determined that the member is terminally ill within the meaning in paragraph (1)(b)(ii),

in anticipation of that member being entitled to an annual payment.

(4) In exercising his discretion under paragraph (3), the scheme manager may only have regard to—

(a) the amount, if any, of any interim pension within the meaning in paragraph 2 of Schedule 2(1) being paid to the qualifying member from the qualifying pension scheme; and

(b) any circumstances relating to the scheme which, in the opinion of the scheme manager, are relevant to determining whether an initial payment should be made.

(5) Schedule 2 makes provision for the determination of the amount of initial payments.

(6) The scheme manager may, at any time before the amount of the annual payment is determined, redetermine the amount of any initial payment paid under paragraph (3) if he is satisfied that the amount being paid by way of initial payment, as determined in accordance with Schedule 2, may be incorrect.

(1)

Paragraph 2 is modified by paragraph 10(a) of Schedule 2.