The Pensions Regulator

Code of practice 08
MNT/MND - putting arrangements in place

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Introduction

1. This code of practice is issued by the Pensions Regulator (the regulator), the body that regulates work-based pension arrangements (occupational pension schemes and certain aspects of stakeholder and other personal pensions).
2. The regulator's statutory objectives are to protect the benefits of pension scheme members, to reduce the risk of situations arising which may lead to calls on the Pension Protection Fund, and to promote the good administration of work-based pension schemes.¹
3. The regulator has a number of regulatory tools, including issuing codes of practice, to enable it to meet its statutory objectives. The regulator will target its resources on those areas where members' benefits are at greatest risk.
4. Codes of practice provide practical guidance on the requirements of pensions legislation and set out the standards of conduct and practice expected of those who must meet these requirements². The intention is that the standards set out in the code are consistent with how a well-run pension scheme would choose to meet its legal obligations.

The status of codes of practice

5. Codes of practice are not statements of the law and there is no penalty for failing to comply with them³. It is not necessary for all the provisions of a code of practice to be followed in every circumstance. Any alternative approach to that appearing in the code of practice will nevertheless need to meet the underlying legal requirements, and a penalty may be imposed if these requirements are not met. When determining whether the legal requirements have been met, a court or tribunal must take any relevant provisions of a code of practice into account⁴.

Purpose of this code

6. The regulator is required to issue this code⁵. Its purpose is to assist trustees of occupational pension schemes to put in place and implement arrangements to provide that at least one-third of the trustees are member-nominated trustees (the requirements)⁶.
7. This code also sets out what the regulator regards as reasonable periods within which⁷:
   • to put in place arrangements to provide that at least one-third of the trustees are member-nominated trustees; and
   • the nomination and selection process should take place.
8. The code does not cover the role and responsibilities of member-nominated trustees, member-nominated directors, or trustees in general.

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