Pensions Simplification
Investment
rules, Pensioneer trustees and funding reviews
Any
investment entered into before A-Day will not be affected
by the new rules.
Schemes can hold assets capable of being enjoyed
by members but there will be a benefit in kind charge.
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Loans
to members will not be allowed.
There will be a limit
on holding shares in the sponsoring employer of 5 %
of fund value.
There will be a borrowing limit of 50
% of scheme assets when the loan is effected. |
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Loans
to employers must:
- Have
an interest rate at least base rate plus 1 %.
- Not
last for more than 5 years.
- Be
secured as a first charge on assets that remain of at least
equal value to the loan.
- Not
be more than 50% of the fund value at the date the loan
is taken.
- Be
repaid either by equal annual installments.
There
will be a facility to allow schemes a single opportunity to
roll over a loan.
It
will no longer be an Inland Revenue requirement to have a
pensioneer trustee.
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