Pensions Citation, commencement and interpretation 1 1 These Regulations may be cited as the Financial Assistance Scheme (Increased Cap for Long Service) Regulations 2018 and come into force on the day after the day on which they are made. 2 In these Regulations, “the FAS Regulations” means the Financial Assistance Scheme Regulations 2005 . Meaning of “the FAS cap” 2 After regulation 17A (ill health payments) of the FAS Regulations , insert— Meaning of “the FAS cap” 17AA 1 This regulation gives the meaning of “the FAS cap” for the purposes of— a Schedule 2 (determination of annual and initial payments); and b Schedule 2A (determination of ill health and interim ill health payments) . 2 In this regulation, “the standard amount” means the appropriate amount given in— a paragraph 7(3) of Schedule 2 in the case of an annual or initial payment; and b paragraph 7(3) of Schedule 2A in the case of an ill health or interim ill health payment. 3 The FAS cap for or in respect of a person who has 20 or fewer years of pensionable service at the time when the person first becomes entitled to an annual payment or (as the case may be) an ill health payment is the standard amount. 4 Subject to paragraph (6), the FAS cap for or in respect of a person who has more than 20 years of pensionable service at that time is the sum of— a the standard amount, and b for each whole year of pensionable service that exceeds 20 years of pensionable service, the amount found by multiplying the standard amount by 3%. 5 If the total amount calculated under paragraph (4)(b) would exceed the standard amount, it is to be treated as being equal to the standard amount. 6 The FAS cap for the purposes of determining the amount of an initial payment or an interim ill health payment is the standard amount. 7 In any case where— a the scheme manager cannot determine the length of some or all of a person’s pensionable service under the scheme rules ; or b the person has benefits under the rules which are not attributable to a particular period of pensionable service, the scheme manager must treat the person as having a length of pensionable service as the scheme manager considers appropriate (which is in addition to any other pensionable service the person has for the purposes of this regulation), having regard to the scheme rules and to such other information as the scheme manager considers relevant. 8 When calculating a person’s pensionable service for the purpose of determining the amount of the FAS cap in relation to a qualifying pension scheme , no account is to be taken of any pensionable service that the person may have under a different pension scheme. 9 A person who is regarded as a qualifying member under regulation 15(5) (qualifying members) must be treated for the purposes of this regulation as having pensionable service of the same length as the deceased former member (which is in addition to any pensionable service that the person is treated as having under paragraph (7)). 10 A pension credit member credited with a length of notional pensionable service because of pension credit rights must be treated for the purposes of this regulation as having pensionable service of that length (which is in addition to any pensionable service that the person is treated as having under paragraph (7)). . Amendment of Schedule 2 to the FAS Regulations 3 Paragraph 7 (cap on expected pension and actual pension) of Schedule 2 to the FAS Regulations is amended as follows— a in sub-paragraphs (3), (4) and (6), for “the FAS cap” in each place where it appears substitute “the standard amount”; b in sub-paragraph (5), for “sub-paragraph (3)” substitute “regulation 17AA (meaning of “the FAS cap”)”; and c in sub-paragraph (6), for the reference to “(3)(e)”, substitute “(3)(f)”. Amendment of Schedule 2A to the FAS Regulations 4 Paragraph 7 (cap on expected pension and actual pension) of Schedule 2A to the FAS Regulations is amended as follows— a in sub-paragraphs (3), (4) and (5), for “the FAS cap” in each place where it appears substitute “the standard amount”; and b in sub-paragraph (5), for “(3)(c)” substitute “(3)(d)”. Transitional provision 5 1 Paragraph (3) applies to a person where— a the person is in receipt of an annual payment or (as the case may be) an ill health payment; b the person first became entitled to that payment before these Regulations come into force; and c payment to that person is capped in accordance with paragraph 7 of Schedule 2 or paragraph 7 of Schedule 2A to the FAS Regulations. 2 Paragraph (3) also applies to a person where— a the person is in receipt of an initial payment or (as the case may be) an interim ill health payment on or after the day these Regulations come into force; b the person subsequently receives an annual payment or (as the case may be) an ill health payment; and c payment to that person is capped in accordance with paragraph 7 of Schedule 2 or paragraph 7 of Schedule 2A to the FAS Regulations. 3 Where this paragraph applies, the amount of the annual payment or the ill health payment to the person is to be recalculated in accordance with regulation 17AA(4) using— a as the standard amount, the amount applying to that person under the FAS Regulations at the time the person first became entitled to an annual payment or an ill health payment; and b where the person was entitled to an ill health payment or an interim ill health payment, the original actuarial factor. 4 The recalculated amount has effect from whichever is the later of— a the date on which the person first became entitled to an annual payment or an ill health payment; or b the date on which these Regulations came into force. 5 In the case of a person to whom paragraph (3) applies, nothing in these Regulations affects the application of the FAS cap when calculating increases already accrued in relation to periods before the day on which these Regulations come into force under— a paragraph 9 (annual increase to an annual payment) of Schedule 2 to the FAS Regulations ; or b paragraph 9 (annual increase to an ill health payment) of Schedule 2A to the FAS Regulations . 6 In this regulation, “the original actuarial factor” means the actuarial factor applied in accordance with paragraph 5 (actuarial reduction) of Schedule 2A to the FAS Regulations at the time when the person first became entitled to an ill health payment. Signed by authority of the Secretary of State for Work and Pensions. Guy Opperman Parliamentary Under- Secretary of State, Department for Work and Pensions 20th February 2018