The Financial Assistance Scheme—what are the available benefits?
Produced in partnership with Weil Gotshal & Manges and Joanne Etherton of Client Earth
The Financial Assistance Scheme—what are the available benefits?

The following Pensions practice note produced in partnership with Weil Gotshal & Manges and Joanne Etherton of Client Earth provides comprehensive and up to date legal information covering:

  • The Financial Assistance Scheme—what are the available benefits?
  • To whom can benefits be paid?
  • Level of FAS benefits for members
  • Considerations relating to the cap
  • Application of the cap
  • Impact of the CJEU case Grenville Hampshire v PPF
  • Increased compensation cap for long service
  • Different benefits on transfer of all assets to FAS
  • Revaluation of the cap
  • Annual increases in FAS benefits
  • More...

THIS PRACTICE NOTE APPLIES TO SCHEMES ENTERING THE FINANCIAL ASSISTANCE SCHEME FROM 1 JANUARY 2012.

Where a scheme, its employer(s) and individual members have satisfied the criteria for eligibility into the Financial Assistance Scheme (FAS), the members will become eligible for benefits payable from the FAS.

The FAS closed to Notification and Qualification of new schemes on 1 September 2016. Members who are in receipt of, or with a deferred entitlement to receive, assistance payments from the FAS are not affected by the closure. The Pension Protection Fund (PPF), which administers FAS on behalf of the Department for Work and Pensions, has confirmed that the pension flexibility changes introduced on 6 April 2015 do not apply to the FAS and therefore do not affect entitlement to benefits payable from the FAS.

For further information, see The Financial Assistance Scheme—eligibility and entry.

The criteria and methods for calculating benefits are set out in the Financial Assistance Scheme Regulations 2005, SI 2005/1986 (the FAS Regs).

To whom can benefits be paid?

Benefits can be paid to:

  1. a member of the pension scheme

  2. a member’s surviving widow, widower or civil partner

  3. a member’s surviving partner (who is not a spouse or civil partner), subject to certain conditions

  4. a member’s surviving dependants (ie children), and

  5. other individuals (in some circumstances)

A member can receive only one type of benefits from the FAS at any

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