Use of Residual Assets
(updated June 2010)
Some FAS qualifying schemes which have wound up have been left with residual assets after initially discharging members’ liabilities. If there are residual assets in the scheme but you do not think that it would be cost effective to divide residual assets amongst members then you may consider applying to the FAS scheme manager to transfer these assets to the Secretary of State.
Application to Transfer Residual Assets
(updated April 2010)
Welcome to our guide for all trustees of pension schemes that have qualified for the Financial Assistance Scheme (FAS) and are in the process of winding-up.
This guide, along with the Pensions Regulator’s Trustee Toolkit is designed to help you progress the wind-up of your FAS scheme(s) effectively and efficiently. It will also help you, as a trustee, to understand:
- your roles and responsibilities during the wind-up of a qualifying FAS scheme;
- the roles and responsibilities of the PPF’s designated caseworker, who will help you through the process; and
- the PPF’s reporting requirements - the importance of regular reporting during the wind-up process
- the wind-up process - understanding the tasks which need to be completed prior to the valuation; and
- the valuation process - general outline of the valuation process for FAS schemes transferring assets to government.
Our key values include teamwork and partnership. We are committed to supporting trustees and their advisors through what is a complex and demanding process. By working in partnership with you we hope to achieve our objectives of enabling the FAS scheme manager to discharge trustees of their scheme responsibilities, and of transferring scheme assets and full scheme data into FAS, as quickly and efficiently as possible.
This guidance will continue to evolve as experience is gained and Regulations are set. We will however be working with you to keep you informed of these updates as and when they happen.
(updated March 2010)
A new version of the FAS application form S1 was introduced following the introduction of the Financial Assistance Scheme Miscellaneous Provisions Regulations 2009. The FAS Operational Unit (FAS OU) will issue the new S1 to schemes to collect new and additional member data where:
- The FAS OU know that a member is approaching their Normal Retirement Age in the period August 2009 to January 2010; and
- Schemes have members who have already been assessed but additional data is now needed to calculate awards at the new benefit rate.
The information collected on the new S1 is used to calculate awards at the new benefit rate that were introduced by the Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009. Please contact us to be sent a copy of the S1 form.
Guidance for completing the S1 is set out in the document above.
(issued January 2010)
Security of personal data is a key issue and we are required to comply with current government security guidelines to ensure we maintain the highest levels of control over storing and handling the data we are responsible for.
We recognise that in exchanging large amounts of personal data, we need to ensure appropriate controls are in operation.
We have been reviewing our security arrangements and our conclusion is the process already in place, on the whole, provides a secure structure. However, we have made a few amendments to the process to further strengthen data security and reduce the risk of loss.
The instructions set out the new process to be followed with immediate effect. We will also update the S1 guidance accordingly.
We do not expect these amendments to prove onerous but if you have any queries relating to this note, please speak to your Customer Account Manager/Transition Analyst.
Trustees of qualifying FAS schemes should use this form to apply for approval to purchase annuities under the provisions of regulation 2(1)(b) of The Financial Assistance Scheme (Halting Annuitisation) Regulations 2007.
Guidance on ensuring data is equalised in respect of GMPs
Schemes have an obligation under EC law to ensure that benefits treat men and women equally. FAS schemes need to provide data on expected pensions to the FAS Scheme Manager so that benefits are equal in respect of GMPs. DWP has provided guidance on a possible approach to achieve this. This can be found at http://www.dwp.gov.uk/docs/fas-guidance-to-ensure-payments-equalised-basis.pdf . Please note the second sentence of paragraph 35 should read: The previous factors should be used for members who have not yet reached their FAS NRA at 21 April 2010. This will be corrected in the next version of the guidance.