The Financial Assistance Scheme (Provision of Information and Administration of Payments) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision relating to the information to be provided by, or to, the scheme manager of the financial assistance scheme (“the scheme manager”). Such information is required to be provided both by trustees, managers and other persons acting in relation to occupational pension schemes in respect of which members may qualify for assistance from the financial assistance scheme, and by or on behalf of persons who may be entitled to payments from the financial assistance scheme.

The scheme manager is appointed by the Financial Assistance Scheme Regulations 2005 (S.I.2005/1986) (“the FAS Regulations”) made under section 286 of the Pensions Act 2004 (c. 35). The financial assistance scheme is intended to make payments to, or in respect of, certain members of certain occupational pension schemes where those schemes started to wind up on or after 1st January 1997 but before 6th April 2005, the sponsoring employer of the scheme is insolvent and where the pension scheme is underfunded at a certain level. These Regulations extend to Northern Ireland.

Regulation 3 and Schedule 1 make provision as to the information to be provided by appropriate persons in relation to schemes to the scheme manager and vice versa, and as to the information to be provided by appropriate persons to members of schemes.

Regulation 4 and Schedule 2 make provision as to the information to be provided by beneficiaries or potential beneficiaries to the scheme manager.

Regulation 5 makes provision as to the method of providing information and as to certain details to be included whenever information is provided by beneficiaries or potential beneficiaries to the scheme manager.

Regulation 6 provides that the scheme manager may refuse to make a determination if he has no, insufficient or unsuitable information and requires him to notify the person who provided, or should have provided, the information accordingly.

Regulation 7 makes provision for recovery of overpayments where payments have been made in excess of entitlement under the FAS Regulations and regulation 8 makes provision for monthly instalments to be suspended where there is a doubt over entitlement.

As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions of the Pensions Act 2004 by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply.

A regulatory impact assessment has not been published for this instrument as it has only a negligible impact on business, charities and voluntary bodies.