The final draft code of practice for Member-Nominated Trustees (MNTs) and Directors on putting arrangements into place has been published by The Pensions Regulator, along with a provisional timetable for the issuing of outstanding codes.
Published to coincide with the legislation coming into force, the draft code will give trustees and other interested parties the opportunity to familiarise themselves with the intended codes if practice.
The final code has been submitted for Ministerial approval, before being laid before Parliament, and will provide trustees with practical guidance on how to comply with the legislation regarding the appointment of member-nominated trustees and member-nominated directors.
Trustees are required to ensure arrangements are in place, and implemented, for at least one-third of trustees or for at least one third of directors of the trustee company to be member-nominated, they must include a nomination and selection process, in addition to complying with other statutory requirements.
In the next few months, the Pensions Regulator says six new codes of practice will be issued, although the codes cannot be issued until the associated regulations have been made and parliamentary procedures have been followed.
However the Regulator warns, trustees of occupational schemes and their advisers should be aware they must comply with the regulations which came into force on 6 April, even where relevant codes of practice are not issued until a later date.
The Pensions Regulator expects the following timetable to apply for publication of future codes of practice:
|Code of practice||Planned date of issue of code (after 40-day laying period)||Date associated legislation comes into force|
|Early leavers — reasonable periods||End May 2006 (laid 14/03/06)||6 April 2006|
|Reporting late payment of contributions to occupational money purchase schemes||Mid May 2006 (laid 02/03/06)||Already in force (changes apply from 6 April 2006)|
|Reporting late payment of contributions to personal pension schemes||Mid May 2006 (laid 02/03/06)||6 April 2006 (changes apply from 6 April 2006)|
|Trustee knowledge and understanding (TKU)||Mid June 2006 (laid 23/03/06)||6 April 2006|
|Member-nominated trustees and directors — putting in place arrangements||End June 2006 (not yet laid)||6 April 2006|
|Modification of subsisting rights||End July 2006 (not yet laid)||Regulations 6 & 7 30 March 2006 Remainder 6 April 2006|
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected]IFAonline
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