02 January 2008
The Government announced in December 2007 that qualification and
compensation levels for the FAS will be improved.
- All scheme members will be guaranteed 90% of their accrued
pension at the date of commencement of wind up, revalued to their
retirement date.
- This will be subject to a cap of £26,000, the value of
which will be protected.
- Payment of assistance derived from post-1997 service will be
increased in line with inflation (subject to a 2.5% limit).
- Assistance will be paid from the scheme's normal retirement age,
subject to a lower age limit of 60.(people who are unable to work
due to ill health will also be able to apply for early access to
their payments from the age of 60, subject to actuarial
reduction)
- Where their share of scheme funds allows, members will be able
to commute some portion of their pension to a lump sum
- Assistance will be extended to members of schemes which wound up
under-funded (after 1st January 1997 and before the employer was
required to meet the full buy-out cost) where the employer is still
solvent.
The final details of these proposals will be confirmed in early
2008.
