Consultation on draft actuarial guidance and revision to the synthetic buy-out basis
28 January 2010
The draft Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010, which were laid before Parliament on 20 January, include provision for the assets remaining in relevant FAS-qualifying schemes to transfer to government. The draft Regulations provide that guidance may be published in relation to the valuations of assets and liabilities of relevant schemes and for individual asset shares to be calculated for scheme beneficiaries. The Government has also prepared guidance on how transferring schemes might deal with the impact of the guaranteed minimum pension on the equalisation (between men and women) of members’ expected pensions and asset shares ahead of providing data to the FAS scheme manager. The consultation published today seeks views on draft guidance in these areas.
Alongside the consultation on draft guidance, the Government is also taking the opportunity to consult on related changes to the FAS synthetic buy-out basis that seeks to provide an estimate of the amount of bulk annuity that could have been secured for a cash sum from an insurer. The basis was last reviewed early in 2008.
This consultation exercise is technical in nature and is primarily aimed at pension industry professionals and others with an interest in defined-benefit occupational pension schemes. However, Government would also welcome feedback from members who may be affected and their representatives. The consultation period ends on 10 March 2010.
The Draft Guidance can be accessed at: www.dwp.gov.uk/consultations
Draft Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010
20 January 2010
The Government published the response to its consultation on the draft Financial Assistance Scheme (Miscellaneous Amendments) Regulations on 20 January 2010. A draft of the Regulations was also laid before Parliament and will be published shortly.
These draft Regulations complete the delivery of the remaining elements of the extensions to the Financial Assistance Scheme (FAS) announced on 17 December 2007, which include:
- the transfer of assets to government;
- payment of lump sums where appropriate; and
- provision for those members of schemes who would have received more from their pension scheme than the assistance payments FAS would otherwise provide had their scheme continued to wind-up and purchase annuities rather than transfer assets.
The Government Response can be accessed at: www.dwp.gov.uk/consultations
An Equality Impact Assessment has also been published today in respect of the FAS and can be accessed at:
http://www.dwp.gov.uk/publications/impact-assessments/equality-impact-assessments
Draft Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010
12 August 2009
The Government published today a consultation on the draft Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010. The consultation seeks views on the draft Regulations that make proposals for the delivery of the remaining elements of the extension to the Financial Assistance Scheme (FAS) announced on 17 December 2007. These include:
- the transfer of assets to government;
- payment of lump sums; and
- provision for those members of schemes who would have received more from their pension scheme than the Assistance payments FAS would otherwise provide had their scheme continued to wind-up and purchase annuities rather than transfer assets.
The written consultation period ended on 6 October 2009.
http://www.dwp.gov.uk/consultations/
Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009
10 July 2009
Regulations came into force on 10 July to make changes to the FAS assistance payable to those qualifying members whose schemes are not among those whose assets are being transferred to government. The regulations also implement certain changes to the management administration of FAS, including making the Board of the Pension Protection Fund (PPF) the FAS scheme manager.
Further FAS news can be found on the DWP site
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