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We published the government response to this consultation on 18 December 2017.
The government has considered the responses received and decided to introduce legislation to create the Financial Assistance Scheme long service cap. This response document summarises the responses received and sets out how the government intends to proceed.
The Financial Assistance Scheme (FAS) is administered by the Pension Protection Fund (PPF). The scheme provides assistance payments to members of eligible defined benefit occupational pension schemes which started to wind up between 1 January 1997 and 5 April 2005. This occurs where the scheme does not have enough funds to pay members’ benefits and the employer cannot pay the shortfall because it is insolvent, no longer exists or is no longer required to meet its debt to the pension scheme.
Assistance provided by the FAS is capped. This consultation seeks views on the draft regulations to apply an increased cap in respect of FAS members with long pensionable service.
We welcome views from any interested parties, particularly:
- members of FAS
- pension scheme administrators
- the Pension Protection Fund Board