Loan

A loan from the pension scheme to another party which:

• does not exceed 50% of the net asset value of the scheme (maximum for all loans);
• has a maximum term of five years;
• is secured as a first charge on assets of adequate value (if made to a sponsoring employer);
• must be repaid in regular capital and interest instalments;
• must be at an interest rate no lower than a prescribed amount if made to a sponsoring employer;

A loan may not be made to members or a connected party.

Back