The Pensions Regulator

Member-nominated trustees and member-nominated directors

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Example to determine whether to run the nomination and selection process

• A scheme with 50 members has 5 individual trustees. Under the Pensions Act 1995 requirements two of these trustees are MNTs.
• Under the new requirements trustees must put in place arrangements within a reasonable period of 6 April 2006 that provide for at least one-third of the total number of trustees to be MNTs.
• In designing their arrangements the trustees determine that therefore they need to have arrangements that provide for two MNTs.
• The trustees put their arrangements in place at their meeting in August 2006. The nomination and selection process must now take place within a reasonable period of any requirement arising under the arrangements.
• But the MNTs appointed under the 1995 Act count as MNTs until the expiry of their term of office. This means that the trustees do not need to run the nomination and selection process until the expiry of the term of office of either MNT or if either MNT leaves post.

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