(i) for "In these Regulations," substitute "Subject to paragraph (8), in these Regulations,", and

(ii) for "potential", in each place that it occurs, substitute "possible"; and

(c) after paragraph (7), add—

(a) dies, or

(b) becomes otherwise incapable of acting for himself,

the person appointed under sub-paragraph (a) of that paragraph is deemed to have been appointed under sub-paragraph (b) of that paragraph.

    (9) For the purposes of these Regulations, a person is "terminally ill" at any time if at that time he suffers from a progressive disease and his death, in consequence of that disease, can reasonably be expected within six months.".

(a) a qualifying member of that scheme—


(i) has attained the age of 64; or

(ii) has not attained that age, but the scheme manager—


(aa) has been notified that a qualifying member is terminally ill; and

(bb) is satisfied as to that fact; or



(b) a qualifying member of that scheme has died and leaves a survivor.

    (2) The trustees or managers of the scheme may make a written request to the scheme manager for a payment ("an initial payment") to be made to, or in respect of, a qualifying member or his survivor—

(a) in anticipation of an annual payment being payable under this Part to the qualifying member or his survivor; and

(b) before any monthly instalment of that annual payment is made.

    (3) If a request for an initial payment is made in respect of a qualifying member who dies before any monthly instalment of an annual payment has been made to that qualifying member, the trustees or managers may make a further request that an initial payment be made in respect of any survivor of that qualifying member.

    (4) On receipt of a request for an initial payment, the scheme manager may, in his discretion, make an initial payment—

(a) to the qualifying member in respect of whom the request was made, with effect from whichever is the later of—


(i) 14th May 2004; or

(ii) the day on which—


(aa) the qualifying member attains the age of 65, or

(bb) the scheme manager is first notified that the qualifying member is terminally ill,



whichever is the earlier; or



(b) if the qualifying member has died, to a survivor of that qualifying member with effect from whichever is the later of—



(i) 14th May 2004; or

(ii) the day after the day on which that qualifying member died.

    (5) In exercising his discretion under paragraph (4), the scheme manager may only have regard to—

(a) the amount, if any, of any interim pension that was in payment, is in payment, or is proposed to be paid, from the qualifying pension scheme—


(i) to a qualifying member up until his death; or

(ii) after his death, to his survivor; and



(b) any circumstances relating to the scheme which, in the opinion of the scheme manager, are relevant to determining whether an initial payment should be made.

    (6) Schedule 2 makes provision for the determination of the amount of initial payments.

    (7) If the scheme manager determines that an initial payment may be made under paragraph (4), the initial payment is payable—

(a) to a qualifying member from the relevant day mentioned in that paragraph until the day on which that qualifying member—


(i) would have been paid, or is paid, the first monthly instalment of an annual payment in accordance with regulation 19, if an annual payment were payable, or is payable, to him under this Part; or

(ii) dies,



whichever is the earlier; and

(b) in respect of a qualifying member who has died, to a survivor of that qualifying member from the day after the day on which that qualifying member died until the day on which his survivor—



(i) would have been paid, or is paid, the first monthly instalment of an annual payment in accordance with regulation 19, if an annual payment were payable, or is payable, to him under this Part; or

(ii) dies,



whichever is the earlier.

     the order-making powers under section 209(4)(d), (f) and (g) of the Act (to provide for the delegation of the functions of the PPF Ombudsman ("the Ombudsman") to his staff or additional staff (as made available to him by the Secretary of State); to confer information gathering functions on the Ombudsman; and to restrict his disclosure of information held by him) to apply as if they included a provision excepting their application to the Ombudsman's functions in relation to FAS; this is so that similar provision can be made in these Regulations rather than in a separate order;

     the obligation for the Ombudsman to prepare an annual report on the discharge of his functions not to apply to any functions conferred on him in relation to an appeal in relation to FAS ("a FAS appeal");

     regulations to be made in relation to FAS appeals to make provision for the costs or expenses of prescribed persons;

     the Ombudsman to refer any question of law arising on the investigation of matters arising on a FAS appeal to the High Court (in England and Wales, or in Northern Ireland) or the Court of Session (in Scotland);

     the publication of any matter by the Ombudsman in connection with a FAS appeal to be absolutely privileged;

     parties to a FAS appeal to appeal to the High Court (in England and Wales, or in Northern Ireland) or the Court of Session (in Scotland) on a point of law arising from a decision of the Ombudsman in relation to a FAS appeal;

     determinations and directions of the Ombudsman to be enforceable in a county court (in England and Wales, or in Northern Ireland) or in the sheriff court of any sheriffdom (in Scotland); and

     the steps that the Ombudsman may take where any person without lawful excuse obstructs the Ombudsman in the performance of his functions or is guilty of an act or omission which would constitute a contempt of court. The Ombudsman may certify the offence to the court and it will then be dealt with in a similar manner to contempt of court.

Regulation 4 amends the FAS Regulations. In particular it—

     makes some minor amendments in regulation 2 of those Regulations (interpretation);

     amends regulation 17 of those Regulations (annual payments) to provide that monthly instalments of an annual payment payable to a beneficiary cease to be payable to that beneficiary when that beneficiary dies;

     substitutes regulation 18 of those Regulations (initial payments) to make provision for initial payments to be made to survivors of qualifying members; and

     makes consequential amendments to Schedule 2 to those Regulations (determination of annual and initial payments) in relation to the determination of initial payments payable to survivors and makes some other minor amendments.

Regulation 5 amends the FAS Internal Review Regulations. In particular it—

     substitutes regulation 4 of those Regulations (duty of scheme manager to give a review decision) to clarify that the duty to give a review decision in respect of a reviewable determination does not arise unless an application for a review of the determination is received in proper form;

     amends regulation 5 of those Regulations (time for making an application for a review of a reviewable determination)—


     to impose a time limit for making an application for a review of a reviewable determination relating to member eligibility or member assessment; and

     to clarify that, for the purposes of determining when an application is made, and to determine if it was made within the prescribed time, an application is made only if it is made by an interested person and it otherwise complies with the requirements of regulations 5 and 6;



     amends regulation 15 of those Regulations (matters to be included in a review decision or a subsequent review decision) to clarify that only interested persons who receive notices of review decisions need to be advised of their right to appeal against those decisions; and

     substitutes regulation 16 of those Regulations (notice of a review decision or a subsequent review decision) to ensure that notices of review decisions are issued to the appropriate persons.

Regulation 6 makes certain amendments to the FAS Information and Payments Regulations. In particular it makes consequential amendments necessary in relation to survivors.

As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions of the Act by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply.

A Regulatory Impact Assessment has not been published for this instrument as it has only a negligible impact on business, charities and voluntary bodies.