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Member-nominated trustees: The nomination process
Trustees must ensure that, within a reasonable period of the commencement date (6 April 2006), arrangements are in place to provide for at least one-third Member Nominated Trustees ("MNTs") and that those arrangements are implemented. (For further details see, Member-nominated trustees: Basics).
The arrangements must include a nomination process, a selection process and comply with other statutory requirements.
Who should be involved?
MNTs must be nominated as a result of a process in which at least the following persons are eligible to participate:
- all the active members (or an organisation which adequately represents them); and
- all the pensioner members (or an organisation which adequately represents them).
Trustees may choose to include others, such as pension credit members and deferred members, in the nomination process. However, if a scheme has no active or pensioner members the process must involve at least such deferred members as the trustees determine.
Who can be nominated?
Any individual can be nominated. However, the Pensions Regulator's Code of Practice suggests that, if trustees desire non–members to be eligible for selection, they should discuss with the employer whether it will wish to approve them and reflect the decision in the arrangements as a criterion for eligibility for both nomination and selection.
Author: Georgina Jones