Schemes to have 50% member-nominated trustees
Proposals to ensure that 50% of pension scheme trustees are member-nominated (“MNTs”) have been announced by the new Secretary of State for Work and Pensions, Alan Johnson. The changes, which were unveiled at the TUC Conference in Brighton on 14 September 2004, will replace the draft requirements in the Pensions Bill for all schemes to have one-third MNTs (or directors of a corporate trustee). One of the main effects of the new proposals is that most schemes (even those which currently meet the one-third MNTs test under the Pensions Act 1995) will have to adjust their trustee boards.