The Local Government Pension Scheme(Management and Investment of Funds) Regulations 1998

Use of fund money by an administering authority

12.—(1) An administering authority must pay interest on the total from day to day of any fund money used by them and not repaid.

(2) That interest may not be paid at a rate lower than the lowest rate at which they could have obtained a commercial loan of that amount at 7 days' notice (otherwise than by bank overdraft).