Pre-Budget report 2006 - Personal financeThe Financial Assistance Scheme (FAS) is a measure intended to help individuals whose company pension schemes started winding up as a result of their employer becoming insolvent between January of 1997 and February of next year.
Many people who were not close to retirement received little or nothing in the way of compensation under the scheme, which only had £400m in funds available to meet payments.
In May, however, the government added another £1.9bn to its coffers following a report by the Parliamentary Ombudsman into the government’s role in promoting final salary pensions. So, more than £2bn is accessible now, although this cash is being spread out over 20 years. However many campaigners believe the FAS is still nowhere near generous enough.
