The Pensions Regulator

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

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What is a reasonable period for putting in place arrangements?

38. Trustees must put in place arrangements within a reasonable period from when the requirements apply²¹.
39. The regulator considers that a reasonable period is six months. This period may, however, vary according to the size, structure and circumstances of the scheme. The regulator would nevertheless expect most schemes to take less than six months. For example:
    • for a small scheme with only a few dozen members it should not take the trustees as long as six months to put the arrangements in place; and
    • where an existing 'opt-out' is coming to an end trustees should consider what new arrangements are needed before the 'opt-out' ceases²².
40. On the other hand for a large scheme where members are based at more than one location and the trustees choose to consult with the membership and/or a representative organisation on the arrangements, it may take longer than six months to put the arrangements in place.

Implementing arrangements

41. The arrangements that the trustees put in place must be implemented²³. The requirements distinguish between 'implementing' arrangements and putting them 'in place'. Implementation requires going beyond putting in place i.e. more than considering, designing and building arrangements.
42. Implementation means that trustees should ensure that those arrangements that have been put in place are operated. Evidence of this would be that the nomination and selection process set out in the arrangements has taken place within a reasonable period of any requirement arising to appoint an MNT and that those MNTs selected have been appointed.

What is a reasonable period for the nomination and selection process to take place?

43. The regulator considers that a reasonable period when a requirement arises under the arrangements to appoint an MNT within which the nomination and selection process should take place is six months. What is reasonable may vary according to the size, structure and circumstances of the scheme.
44. The nomination and selection process should take place, but does not necessarily need to be completed, within six months.

Recording compliance

45. Trustees should keep a record of the steps they have taken to comply with the requirements. In addition to providing an audit trail, these records may save time during any future discussions of the requirements.
46. Trustees may also if they wish keep records of the material matters they took into account during their deliberations on complying with the requirements and their reasons for making these decisions.

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