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Pensions: Financial Assistance Scheme

Volume 463: debated on Monday 23 July 2007

To ask the Secretary of State for Work and Pensions (1) what the average payment will be under the Financial Assistance Scheme for a member of the Abingdon Carpets pension scheme; (147298)

(2) how many members of the Abingdon Carpets pension scheme are forecast to receive 80 per cent. of their core pension under the Financial Assistance Scheme.

Abingdon Carpets’ pension scheme qualified for Financial Assistance Scheme (FAS) on 25 October 2005. Five members of the scheme are currently in receipt of FAS initial payments, these are currently set at 60 per cent. of the expected core pension, but will rise to 80 per cent. once the scheme fully winds up.

The average yearly payment these members receive is 1194.58p (gross), 931.90p (net).

Under the changes to the FAS announced by the Chancellor of the Exchequer in his Budget Statement on 21 March 2007, all qualifying members of a qualifying pension scheme stand to receive 80 per cent. of their expected core pension (subject to the cap)

The changes require regulations which we hope will come into force before the end of the year.