The extension to the FAS announced in March means that we will be helping many more members over a greater length of time. Because of the extension the payment assessment rules may need to be revised to help ensure we determine FAS payments consistently for all members. We intend to ensure that the cap retains its value, even where assessments are made for members who will not be eligible for payment until many years into the future. We are looking at the best way to achieve this objective and details will be published in draft regulations for consultation.
There are two ASW pension schemes that qualify for the Financial Assistance Scheme (FAS). FAS cannot make annual payments at 80 per cent. until the ASW pension schemes have completed the wind up process. In the meantime, initial payments at 60 per cent. of expected core pension are being made to 31 members of the ASW Pension Plan (Cardiff) and three members of the ASW Sheerness Steel Group Pension Fund. The current Pensions Bill will raise the level at which initial payments are made to 80 per cent. with immediate effect from Royal Assent. No payments are being made at the rates of 80 per cent., 65 per cent. and 50 per cent.
As FAS payments commence at age 65, (except in special circumstances where early access to payments can be applied for by scheme trustees for terminally ill qualifying members or to the survivor of a qualifying member), under the current scheme no-one would be expected to start receiving payments at the rate of 65 per cent. or 50 per cent. until at least 15 May 2011 or 15 May 2015 respectively. However our announcement of increased funding for FAS will ensure that by then all will receive 80 per cent.
There are two ASW pension schemes which qualify for FAS, the ASW Pension Plan (Cardiff) and the ASW Sheerness Steel Group Pension Fund. The following figures relate to individual member/survivor payments of gross payments per annum (inclusive of tax but not including arrears).
Amount (£) Highest payment 7,557.72 Lowest payment 399.24 Average payment 2,578.71
Amount (£) Highest payment 2,606.52 Lowest payment 726.92 Average payment 1,684.08
Amount (£) Highest payment 7,557.72 Lowest payment 399.24 Average payment 2,537.18
Amount (£) Highest payment 2,606.52 Lowest payment 635.76 Average payment 1,280.68