Member-nominated trustees
The Pensions Act 2004 (PA 2004) will require that at least one-third of the total number of trustees of occupational pension schemes are member-nominated trustees or directors (MNTs). The current proposal is that this moves up to 50% in 2009. PA 2004 represents a change in direction from the current MNT provisions, which allow an employer to propose alternative arrangements which differ from the legislative requirements (the “opt out”). This will no longer be possible and the existing trustees will need to secure compliance with the new provisions. To help trustees, the Pensions Regulator (TPR) published a draft code of practice – “Member-nominated trustees and directors – putting arrangements in place” – on 8 July 2005. The consultation on the associated draft Regulations was published by the DWP on 15 July 2005.