UK - Schemes will be able to borrow money for the first time, under changes outlined in the Finance Bill.
From April 2006, Inland Revenue registered schemes will be able to borrow an amount worth up to 50% of their total value.
Anything exceeding the limit will be taxed at 40% and the loans will have to be repaid within five years – which can be extended for an additional five years – effectively giving schemes a decade.
At the moment, only small self-administered schemes and self-invested personal pension schemes can take out loans, which have to be repaid within eight years.
SSASs can currently borrow a total equal to 45% of their net assets and three times the ordinary annual contribution paid by members or employers.
Presently, SIPP schemes can only borrow money to purchase a property, and this amount is limited to 75% of the price of that property. These restrictions will disappear after April 2006.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.