Designed to assist those who has lost pension benefits due to an insolvent company but aren’t covered by the PPF. They helped:

• Members of DB schemes that were underfunded and started to wind up between January 1997 and April 2005 (ie before the PPF started)
• The scheme wound up and didn’t have enough money to pay members’ benefits
• The employer became insolvent and couldn’t pay the shortfall, no longer exists or no longer has to meet the commitment to pay its debts to the scheme.

The FAS will pay 90% of the pension benefits to the member, subject to a cap of £35,256.

Government legislation has increased the cap by 3% for each complete year of pensionable service with a scheme over 20 years, subject to an increase of twice the original cap.

Benefits will be revalued at RPI to a max of 5% for benefits before March 2011 and CPI to a max of 2.5% for benefits after March 2011

Payments will increase in line with CPI to a max of 2.5% for service from April 1997

A surviving spouse will get 50% of the member’s benefits

FAS payments are made from the later of the scheme’s NRA subject to a lower limit of 60.