Section 184 | Unauthorised borrowing: other arrangements

From legislation.gov.uk

(1)A registered pension scheme is not authorised to borrow an amount in respect of any relevant arrangement unless the scheme borrowing condition is met.

(1A)In this section “relevant arrangement” means an arrangement that—

(a)is not a money purchase arrangement, or

(b)is a collective money purchase arrangement.

(2)The scheme borrowing condition is met if—

Formula

(APB + PB) < \frac{AARA}{2}

where—

APB is the aggregate of the amounts previously borrowed by the pension scheme in respect of relevant 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 relevant arrangements, and

(b)the market value of the assets held for the purposes of such of the arrangements under the pension scheme as are relevant arrangements.