The Pensions Regulator

Member-nominated trustees and member-nominated directors

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The legal requirements for your scheme (8)

The requirement

The requirement that applies is to put in place and implement arrangements to provide that a proportion of the trustees are member-nominated and that the proportion of member-nominated trustees are at least the proportion as provided for by the rules of the scheme.

The arrangements

The arrangements must, at least, provide:

• for a nomination process in which at least the active and pensioner members, or an organisation that adequately represents them, are eligible to participate;
• for a selection process in which some or all of the members are eligible to participate;
• that the nomination and selection process must take place within a reasonable period of any requirement to appoint an MNT or MND;
• that where a vacancy is not filled because insufficient nominations are received, the nomination and selection process must be repeated at reasonable intervals until the vacancy is filled;
• that, if approval is required by the employer, a non-member of the scheme must have the employer's approval to qualify for selection as an MNT or MND;
• that where the number of nominations received is equal to or less than the number of vacancies, the nominees may be deemed to be selected;
• that an MNT or MND can only be removed by a vote of the membership; and
• that an MNT or MND cannot be excluded from the exercise of any trustee function only on the basis of being an MNT or MND.

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