2008 No. 3069

Pensions

The Financial Assistance Scheme (Amendment) Regulations 2008

Made

Laid before Parliament

Coming into force

The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of section 286, 315(5) and 318(1) of the Pensions Act 20041.

This instrument contains regulations which are made before the end of the period of six months beginning with the coming into force of the provision of the Pensions Act 2004 by virtue of which the regulations are made2.

Citation, commencement and interpretation1

1

These Regulations may be cited as the Financial Assistance Scheme (Amendment) Regulations 2008 and shall come into force on 23rd December 2008.

2

In these Regulations, “the FAS Regulations” means the Financial Assistance Scheme Regulations 20053.

Amendment of the FAS Regulations2

1

Regulation 9 of the FAS Regulations (qualifying pension schemes) is amended as follows.

2

At the beginning of paragraph (1)(b) insert “except where paragraph (1B) applies,”.

3

After paragraph (1A)4 insert—

1B

This paragraph applies where—

a

the scheme began to wind up during the period beginning on 6th April 2005 and ending on 22nd December 2008;

b

paragraph (i) or (ii) of paragraph (1)(c)5 applies by virtue of an insolvency event which occurred before 6th April 2005; and

c

there has not been an insolvency event in relation to the relevant employer which would be a qualifying insolvency event for the purposes of section 1276 or Article 1117 (duty to assume responsibility for schemes following insolvency event) if the scheme were an eligible scheme.

1C

In paragraph (1B)—

  • “eligible scheme” has the meaning given in section 1268 or, as the case may be, Article 1109 (eligible schemes);

  • “relevant employer” means the employer in relation to the scheme or, in relation to a multi-employer scheme, any employer or employers in relation to the scheme.

Consequential provision3

1

Where a scheme is a qualifying pension scheme for the purposes of the FAS Regulations by virtue of these Regulations, that scheme—

a

is not an eligible scheme for the purposes of section 126(1)(b) of the Pensions Act 2004 or Article 110(1)(b) of the Pensions (Northern Ireland) Order 200510 (eligible schemes); and

b

remains a qualifying pension scheme for the purposes of the FAS Regulations if, on or after 23rd December 2008, there is an insolvency event in relation to the relevant employer which would be a qualifying insolvency event for the purposes of section 127 of that Act or Article 111 of that Order (duty to assume responsibility for schemes following insolvency event) if the scheme were such an eligible scheme.

2

In paragraph (1), “relevant employer” means the employer in relation to the scheme or, in relation to a multi-employer scheme, any employer or employers in relation to the scheme.

Signed by authority of the Secretary of State for Work and Pensions.

William D.McKenzie,Parliamentary Under Secretary of State,Department for Work and Pensions
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend regulation 9 of the Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986, as amended) (“the FAS Regulations”) which provide for payments to be made to, or in respect of, certain members or former members of certain occupational pension schemes where the liabilities of the scheme to those people are unlikely or unable to be satisfied in full.

The amendment provides for an exception to the condition in paragraph (1)(b) of that regulation which must be met in order for an occupational pension scheme to be a qualifying pension scheme for the purposes of the FAS Regulations.

Regulation 3 makes a consequential provision providing that a scheme which is a qualifying pension scheme for the purposes of the FAS Regulations as a result of these Regulations is not an eligible scheme for the purposes of the Pension Protection Fund and remains a qualifying pension scheme for the purposes of the financial assistance scheme where an event occurs which would be a qualifying insolvency event for the purposes of the Pension Protection Fund if it were an eligible scheme.

As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provision 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 full impact assessment has not been published for this instrument as it has only a negligible impact on the private or voluntary sectors.