The FAS was set up to assist individuals who have lost pension
rights because they were members of underfunded occupational pension
schemes.
There have been a number of improvements since the FAS went
live. The rules detailed here are those that came into affect
from 4 June 2008.
Eligibility
To be eligible for assistance, an individual must be a member of
an underfunded occupational pension scheme, which has met the FAS'
qualifying conditions. These are:
- The scheme started to wind up between 1 January 1997 and 5
April 2005; and
- The sponsoring employer has had an insolvency event before 28 February
2006 (although there is discretion for the FAS to also cover
schemes with solvent employers).
Compensation
Compensation is paid in the form of a top-up. The top-up
is aimed to provide the member with 90% of the pension they were
expecting to receive from their scheme at their Normal Retirement Age
(NRA). However, the FAS can make payments before NRA if the
member is unable to work because of ill health, subject to some
restrictions.
Any compensation accrued in respect of scheme service after 6
April 1997 will be increased each year in payment in line with the
Retail
Price Index (RPI) (capped at 2.5% a year).
In all cases, there is a cap of £29,386 a year to the
amount that the FAS will top up to.
The FAS has published a document detailing how tax will be
applied to awards that are backdated. Click here to read
that document.
Contact the FAS
Financial Assistance Scheme
PO Box 234
Mowden Hall
Darlington
DL1 9GL
Telephone: 0845 604
4585
Email: members@fasonline.org.uk
Website: www.pensionprotectionfund.org.uk/FAS/Pages/Fas.aspx
Publications
Copies of the following publications
are available from the FAS.
- What the FAS means for you
- FAS reviews and appeals
- Tax Factsheet
- Information for members of FAS qualifying schemes
Q & A's
A full list of schemes that have been accepted by the FAS, and
those which have not been accepted, can be viewed on the FAS's
website by clicking here.
Financial Assistance Scheme
PO Box 234
Mowden Hall
Darlington
DL1 9GL
Telephone: 0845 604
4585
Members can also notify the FAS about their schemes and it's
also possible for the notification deadline to be extended, as long
as there is good cause for the late notification. The FAS's
Operational Unit can be contacted at:
Financial Assistance Scheme
PO Box 702
York
YO32 9XR
Telephone: 0845 6019941
Email: FAS-Operational-Unit@dwp.gsi.gov.uk
To be a qualifying member, the FAS must have accepted your
scheme. In addition, the scheme must have insufficient funds
to provide you with your full pension. The FAS will then
ensure you receive 90% of the pension you were expecting to receive
at your NRA.
Assistance is provided by way of a top-up to your scheme
pension. If you qualify, you receive a top up to 90% of the
pension you were expecting to receive at your NRA.
In all cases, there is a cap of £29,386 a year to the
amount that the FAS will top up to.
Awards from the FAS begin from a member's NRA. If you have
already passed your NRA, you will receive a
backdated award.
FAS payments are normally paid at 90% of your 'accrued pension'
(the pension you built up in your scheme), less any scheme pension
you receive, up to an annual limit of £29,386 and are paid
from your Normal Retirement Age
(NRA). However, the FAS can make payments up to five
years before your NRA (or within five years
of 60, if your NRA is below 60) if
you are unable to work because of ill health. Any
assistance paid early is subject to an actuarial reduction and revalued to the date payments begin.
If you die before your eligibility for an award has been
assessed, the FAS will still carry out the assessment in the normal
way. Any award then calculated will be backdated to the date it
would otherwise have been paid and is payable as a lump sum to your
estate. If you have an eligible dependant, they will be
entitled to future awards at the survivor rate.
Spouses and registered civil partners will be
eligible to awards of 50% of a member's award in the event of their
death. Payment would begin from the date of the member's death.
