22 June 2005 - Early FAS Payments For Pensioners Most In Need
Terminally ill people who have lost their pensions through the collapse of their company will be amongst the first group of people to receive payments from the Government’s Financial Assistance Scheme (FAS), Pensions Reform Minister, Stephen Timms announced today.
Draft regulations are being laid today, following a six week consultation, which set out the detailed proposals for the FAS. These state that early payments will also be available for those people that reach 65 before their scheme has completely wound up. The £400 million FAS was established in the Pensions Act 2004 to help some of those people who have lost out significantly due to their pension scheme winding up underfunded.
Stephen Timms said:
“We have always said that the aim of the Financial Assistance Scheme is to get money out as quickly as possible to those who need it most, and today’s regulations will put those words into action.
“The ability to make early payments to qualifying members who are terminally ill and those reaching 65 before their scheme has completed winding up, will provide vital help to people suffering the worst difficulties.”
Alongside the regulations the Government has today published its response to the consultation.
Mr Timms continued:
“We have listened carefully and gratefully to all those who took part in the consultation over the past six weeks and considered all arguments in the drafting of these regulations.
“The department is continuing to gather information on potentially eligible schemes and scheme members and I am acutely aware of the difficult position many people are in. The department is continuing to work hard and focusing its efforts on being able to make payments as soon as practically possible.
“We are also committed to review the FAS after three years and its funding
will be considered in the next spending review alongside other spending priorities.”
Notes for editors
- Details of the consultation response can be found on the FAS web pages at www.dwp.gov.uk/fas
- The Financial Assistance Scheme was part of the Pensions Act which has received Royal Assent on 19th November and can be viewed at: http://www.hmso.gov.uk/acts/acts2004/20040035.htm#aofs
- Further details on the Financial Assistance Scheme can be found at www.dwp.gov.uk/fas
- The completion of this consultation and laying of draft regulations fulfils Government commitments made in the previous parliament.
- The FAS Operational Unit will be based in York
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