The Pensions Regulator

Member-nominated trustees and member-nominated directors

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Opt-out in place on 5 April 2006

Trustees of schemes which had an opt-out under the Pensions Act 1995 in place on 5 April 2006 have additional considerations when putting arrangements in place for MNTs and MNDs.

The date the requirements start to apply
The date the requirements start to apply (the commencement date) is modified from 6 April 2006 for trustees of schemes with an opt-out in place. When do the MNT and MND requirements apply from? tells you more.

This means trustees have to put arrangements in place within a reasonable period of the commencement date for their scheme.

Considering current arrangements
Trustees may wish to review the arrangements under the opt-out and consider whether any of the current arrangements are still appropriate.

See Considering current arrangements for MNTs or MNDs.

Trustees appointed under the terms of the opt-out Although the opt-out ends, those appointed as trustees under the opt-out remain as trustees until their term of office expires. This means that the trustees remain in post but they do not count as MNTs or MNDs under the requirements.

Whilst the opt-out remains in place
Until the opt-out ends trustee arrangements are governed by the terms of the opt-out. So if, for example, a trustee resigns, the trustee is replaced under the terms provided for in the opt-out.

See putting arrangements in place for more information on the considerations when considering, designing and building arrangements.

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