The Financial Assistance Scheme Regulations 2005

[F1Annual increasesU.K.

This section has no associated Explanatory Memorandum

4.—(1) Except where there is no percentage increase in the [F2general level of prices] for the period of 12 months ending with 31st May last falling before the indexation date, where the asset share determined in respect of a person to whom an amount is payable in accordance with this Schedule was sufficient to be applied to annual increases, that person shall be entitled, on each indexation date after the day on which the transfer notice is given, to an increase of—

(a)the appropriate percentage of the amount of the underlying rate immediately before that date; or

(b)where that person first became entitled to a payment in accordance with regulation 17G or 17H during the period of 12 months ending immediately before that date, one twelfth of that amount for each full month since the date on which the payment was first payable.

(2) In this paragraph—

“appropriate percentage” means the lesser of—

(a)

the percentage increase in the [F2general level of prices] for the period of 12 months ending with 31st May last falling before the indexation date; and

(b)

2.5%;

“relevant date” means—

(a)

in the cases of a person to whom regulation 17G applies, the day on which the scheme’s liability to provide a pension or other benefit to the person arose; and

(b)

in the case of a person to whom regulation 17H applies, the later of—

(i)

the day from which the beneficiary began to receive a present payment from the scheme; and

(ii)

the day on which the scheme began to be wound up.

“underlying rate” means—

the aggregate of—

(i)

where regulation 17G applies, so much of the payment as the scheme manager determined under regulation 27(7)(b)(ii) could be increased; and

(ii)

where regulation 17H applies, so much of the payment as the scheme manager determined under regulation 27(7)(a)(ii) could be increased;

(b)

the total amount of any annual increases which the scheme manager has determined under regulation 27 could be paid on the notional pension from the relevant date until the day on which the transfer notice is given; and

(c)

any annual increases to which the person is entitled in accordance with sub-paragraph (1) immediately before the indexation date.

(3) The reference to payments in the definition of “underlying rate” in sub-paragraph (2) is to the amount of payment prior to any reduction made by the scheme manager under paragraph 1(2) or (5).]

Textual Amendments