Trust-based occupational pension schemes will be required to have at least one-third of trustees nom...
Trust-based occupational pension schemes will be required to have at least one-third of trustees nominated by members under new rules proposed by the Government
SSAS and EPP would not be included in this proposal as EPPs have only one member and with SASS all trustees are members. Wholly insured, ear-marked money purchase schemes would also be exempt
When the Government first initiated member-nominated tru-stee structures it left in the option for employers, with a majority of employees' permission, to maintain their scheme as it was. While employers will be able to continue these arrangements, with member approval, they will have to switch to a member-nominated format, according to the DSS pensions consultation paper which gives no timetable for the changes. As such, the majority of UK defined contribution and defined benefits schemes have member trustees but are not member-nominated
The changes, published in a consultation paper developed in partnership with the NAPF, the ABI and pensions regulators, would lessen that flexibility
Steven Cameron, head of pensions development at Scottish Equitable, said: "Under these proposals, employers who do not have member-nominated schemes will have to have them. The Government has also dropped its proposal that a pensioner must sit on the board of a large pension scheme
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