The Pensions Regulator

Member-nominated trustees and member-nominated directors

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What are the legal requirements for MNTs and MNDs?

Trustees are required to ensure that arrangements are in place, and implemented, to provide for at least one-third of trustees or at least one-third of directors of the trustee company to be member-nominated.

An MNT or MND is a trustee who:

• is nominated as a result of a process which must involve at least:
  • all the active members of the scheme or an organisation that adequately represents them; and
  • all the pensioner members of the scheme or an organisation that adequately represents them; and
• is selected by some or all of the members of the scheme.

The arrangements themselves must contain certain basic requirements. Paragraph 47 of the code of practice tells you more.

You can use the decision tree to identify the legal requirements for your scheme.

As well as establishing what the legal requirements are for their scheme, trustees also need to consider the code of practice and the rules of their scheme when putting arrangements in place.

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