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

Application of the requirements

  1. MNTs are trustees who:
    • are nominated as a result of a process which must involve at least:
      • all the active members of the scheme or an organisation that adequately represents them; and
      • all the pensioner members of the scheme or an organisation that adequately represents them; and
    • are selected by some or all of the members of the scheme12.
  2. Trustees must ensure:
    • that, within a reasonable period, arrangements are in place for at least one-third of the trustees to be member-nominated trustees; and
    • that those arrangements are implemented13.

Determining whether the requirements apply

  1. The requirements apply to all schemes, unless they are exempted14, in which case they will apply once relevant exemptions cease15.
  2. Trustees should establish whether they are trustees of an occupational pension scheme and whether the requirements apply to their scheme. If so then the trustees must put in place and implement arrangements.
  3. Trustees should keep a record of any exemptions which apply.

Determining which requirements apply

  1. There are two distinct sorts of requirement: one for MNTs and one for MNDs. Which applies depends on the constitution of the trustee body. The requirements for MNDs are the same as MNTs other than where a company is a trustee of more than one scheme16.
  2. For schemes where all the trustees are individuals or individuals and companies, the MNT requirements (rather than the MND requirements) apply. If a trustee body comprises both individuals and companies, each company counts as a single trustee for the purpose of determining the total number of trustees.
  3. For schemes where all the trustees are companies, the MND requirements apply. If a company is the sole trustee then the MND requirements apply to the total number of company directors. If a trustee body has more than one company as trustee then the MND requirements apply separately to each company.

Determining when the requirements apply

  1. The requirements apply from the commencement date for the scheme. The commencement date varies depending on the circumstances of the scheme.

Determining how many MNTs are required

  1. Trustees should identify the correct number of MNTs for their scheme17. At least one-third of the total number of trustees must be MNTs. If, for example, there are ten trustees then four must be MNTs.
  2. Trustees should check the rules of the scheme to establish whether they require more than one-third of trustees to be member-nominated trustees. For such schemes the proportion specified in the rules will apply18.
  3. If the rules of the scheme make no such provision then trustees must have the employer's consent should they consider it desirable for more than one-third of trustees to be member-nominated trustees.
  4. Having identified the number of MNTs for the scheme, the trustees should calculate the number of vacancies taking into account the number of MNTs already in post.
  5. For the purposes of the Pensions Act 2004 MNTs already in post include those appointed under any arrangements that were in place under sections 16 or 18 of the Pensions Act 199519.

12 See sections 241(2) and 242(2).
13 See sections 241(1) and 242(1).
14 The exemptions are set out in sections 241(8) and 242(10) and regulations 2 and 3. Among the exemptions are schemes where all the trustees or directors are independent as defined in section 23 of the Pensions Act 1995.
15 See sections 241(3)(b) and 242(3)(b).
16 See paragraphs [87] to [90].
17 See paragraphs 22 and 23.
18 See regulation 5(2).
19 See regulation 5(4).


Related documents
MNT/MND (PDF)
Related pages
Codes-related guidance: Member-nominated trustees and member-nominated directors