Guidance on how to implement arrangements for member-nominated trustees and directors has been published by the Pensions Regulator.
The guidance has been timed to accompany the code of practice on MNTs which was laid before Parliament in July, and it sets out:
- Which requirements apply to certain schemes
- The commencement date for these requirements
- And transitional arrangements for schemes which already have MNTs under the Pensions Act 1995
Under the Pensions Act 2004 trustees are required to make sure arrangements are in place for at least one-third of trustees or at least one-third of directors of the trustee company to be member-nominated.
The arrangements must include a nomination process, a selection process and other statutory requirements. As a result the guidance has devoted a section specifically on how best to design and build an appropriate system and whether trustees can make use of any existing arrangements.
In addition the Pensions Regulator outlines the different introduction dates for the rules, which vary from 6 April 2006 to 31 October 2007 depending on the circumstances of the scheme, as well as exemptions from the rules, including if the scheme is a stakeholder pension scheme or if it only has one member, as in an Executive Pension Plan (EPP).
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