The Pensions Regulator

Member-nominated trustees and member-nominated directors

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Bringing the opt-out to an end early

For schemes that had an opt-out in place under the Pensions Act 1995 the date the opt-out ends is the date that the members' approval for an opt-out ceases. If this is before 31 October 2007 this will be the date the MNT MND requirements start to apply to a scheme.

It is possible to bring the opt-out to an end earlier than this and this may be appropriate in some circumstances.

Trustees may bring the opt-out to an end in certain circumstances – see When can trustees bring an opt-out to an end early? Trustees should be aware of the events which may trigger the opt-out to end early.

The employer may bring the opt-out to an end at any time before the approval ceases or 31 October 2007. See When can the employer bring an opt-out to an end early?

Trustees, together with the employer, should consider whether they wish the employer to bring the opt-out to an end early. This may be appropriate for their scheme in certain circumstances.

For example, if the nomination and selection of trustees under the opt-out is due shortly before 31 October 2007, it may be appropriate to bring the opt-out to an end and put new arrangements in place rather than have to run two nomination and selection processes within a short time of each other.

The date the trustees or employer bring the opt-out to an end is the commencement date for the MNT and MND requirements if it is before 31 October 2007.

If you want to know more about the considerations for trustees of these schemes see Opt-out in place.

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