(1) Section 772 of the Principal Act is amended by inserting the following after subsection (3D):

"(3E) A retirement benefits scheme shall neither cease to be an approved scheme nor shall the Revenue Commissioners be prevented from approving a retirement benefits scheme for the purposes of this Chapter because of any provision in the rules of the scheme which makes provision for borrowing by the scheme.".

(2) Section 774 of the Principal Act is amended by substituting the following for subparagraph (ii) of subsection (7) (b):

"(ii) in the case of -

(I) such a contribution made on retirement, following an application in writing made before 6 February 2003 by the employee in response to an invitation in writing under the scheme, pursuant to the rules of the scheme -

(A) to contribute towards the purchase for superannuation purposes of relevant benefits, consisting of only a pension on retirement not exceeding one-eightieth of the employee's final remuneration for each year of service up to a maximum of 40 years and a lump sum not exceeding three-eightieths of the employee's final remuneration for each year of service up to a maximum of 40 years, in respect of actual service by the employee before becoming a member of the scheme, and