Codes of practice outlining the rules for Member Nominated Trustees and internal controls for pension schemes have come into effect from today.
The Pensions Regulator says although codes of practice are not statements of law, it warns they do have evidential value, which means they will be taken into account by the determinations panel and at a court or tribunal, where relevant.
Under the “Member-nominated trustees (MNT) and directors – putting in place and implementing arrangements code” at least a third of pension scheme trustees, or one third of the directors of a trustee company must be member-nominated.
In addition the requirements of the code mean arrangements by pension schemes must include a nomination process, and a selection process as well as satisfying “other statutory requirements”.
Meanwhile the Pensions Regulator says the internal controls code provides guidelines for both trustees and managers of occupational pension schemes on how to meet legislative requirements.
The code is also intended to outline the Regulator’s expectations of schemes in relation to their assessment of risk, as well as the implementation and review of adequate controls for the working of the scheme.
Guidance to complement the code on MNTs has been published by the Regulator to help clarify for trustees the timings and “transitional issues” related to the code of practice.
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