C1C3C4C2C6Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)

C3C4C2C6Chapter 3Payments by registered pension schemes

Borrowing

I1C5C3C4C2C6184C3C4C2C6Unauthorised borrowing: other arrangements

1

A registered pension scheme is not authorised to borrow an amount in respect of any arrangement which is not a money purchase arrangement unless the scheme borrowing condition is met.

2

The scheme borrowing condition is met if—

(APB+PB)<AARA2math

where—

APB is the aggregate of the amounts previously borrowed by the pension scheme in respect of arrangements which are not money purchase arrangements (excluding any amounts which have been repaid),

PB is the amount proposed to be borrowed by the pension scheme, and

AARA is the aggregate amount of the relevant sums and assets.

3

The aggregate amount of the relevant sums and assets is the aggregate of—

a

the amount of the sums held for the purposes of such of the arrangements under the pension scheme as are not money purchase arrangements, and

b

the market value of the assets held for the purposes of such of the arrangements under the pension scheme as are not money purchase arrangements.