Loan security

Using your benefit as security for a loan

You may be able to use your benefit in the scheme as security for a loan. However, the lender is not entitled to make a claim against the scheme until a benefit becomes payable. The loan agreement must include a term to this effect.

If you use your benefit as security for a loan, a charge will be registered against your benefit in the scheme. If a benefit – including a partial withdrawal – is paid from the scheme, the outstanding amount of any charge may have to be paid first.

The scheme is not a lending institution and must follow the rules set out in the Financial Markets Conduct Act 2013 and in the trust deed.