FAS moving forward
In summary:
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In December 2007 the Secretary of State for Work and Pensions announced changes to the FAS. Some of the changes which were announced have not yet been approved by Parliament and some still need to go through a formal consultation process.
The following shows the main changes made during 2008:
- We have changed the rate of financial help from the FAS from 80 percent to 90 percent of an eligible member’s accrued pension.
- The 90 percent rate will be paid from the normal retirement age set by the qualifying scheme’s rules (but not before the age of 60 or before 14 May 2004).
- People who are unable to work due to ill health are now eligible to receive payments from the FAS before their normal retirement age.
- Members of some final-salary schemes that were wound-up because they could not pay members’ benefits will be able to receive assistance payments even if their employer continues trading.
- Trustees must give us the information we need within three months of a member’s normal retirement age so that the FAS can work out the member’s assistance payments in good time.
Still to come:
- Pension accrued from service after 1997 will be linked to inflation (based on the Retail Price Index, up to a 2.5 percent limit).
- In certain circumstances, members will be able to receive a tax-free lump-sum (up to their full lump sum entitlement), if their pension scheme funds allow. (A lump sum is a single payment of money you receive instead of payments every month.)
If you are already receiving FAS payments when each of these changes is introduced, we will automatically review your payments. You don’t need to do anything. If your payment changes, we will write to tell you.
Our FAS timeline shows the developments in the FAS since it was announced in 2004 and Legislation summarises relevant Regulations as they came into force. The publications below summarise the main developments for the financial years 2006-07 and 2007-08.
