Financial Assistance Scheme
Encyclopedia
The Financial Assistance Scheme (FAS) offers help to members of eligible schemes who have lost out on their pension
either because their employer became insolvent between 1 January 1997 and 5 April 2005,
or is solvent but under a "compromise agreement" no longer has to meet its commitment to pay its debt to the pension scheme.
and is managed by Board of the Pension Protection Fund
(PPF), established by the Pensions Act 2004 which is accountable to Parliament through the Secretary of State for Work and Pensions. However the FAS is financially separate from the PPF which is funded by a levy on direct benefit schemes. The pension is revalued in line with Price inflation up to National Retirement Age and the FAS tops up any amount received from a scheme annuity to a nominal 90% of the previously expected pension (up to a maximum of £26,000). It can also pay ill health benefits. Indexation ceases at retirement.
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
either because their employer became insolvent between 1 January 1997 and 5 April 2005,
or is solvent but under a "compromise agreement" no longer has to meet its commitment to pay its debt to the pension scheme.
Funding
It is funded by scheme assets and an estimated £1.9B of taxationand is managed by Board of the Pension Protection Fund
Pension Protection Fund
The Board of the Pension Protection Fund is a Statutory Fund in the United Kingdom. It was created under the Pensions Act 2004. The Board of the PPF is a Statutory Corporation responsible for managing the Fund and for making payments to members....
(PPF), established by the Pensions Act 2004 which is accountable to Parliament through the Secretary of State for Work and Pensions. However the FAS is financially separate from the PPF which is funded by a levy on direct benefit schemes. The pension is revalued in line with Price inflation up to National Retirement Age and the FAS tops up any amount received from a scheme annuity to a nominal 90% of the previously expected pension (up to a maximum of £26,000). It can also pay ill health benefits. Indexation ceases at retirement.