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Recruiting to the governing body

Important

Early draft of the code of practice

This code is not in force yet. It is an early version for the new code of practice consultation.

To give us feedback on issues such as the design, usability and navigation of this code, email us at webfeedback@tpr.gov.uk.

You can also read more information about the consultation.

Published: 17 March 2021

Trustees and scheme managers should have processes in place to exercise any powers they have in recruiting and appointing members to a governing body. Our expectations for appointing service providers and advisers can be found in Managing advisers and service providers. Processes for appointing members to a governing body should have the features below.

Recruitment and standards

  • Be clear who is responsible for the recruitment, selection and appointment process.
  • Include any input required from other parties.
  • Identify gaps in skills and competencies across the governing body and how these can be addressed over time.
  • Have a succession plan in place to maintain the skills and competencies needed by the governing body to operate properly.
  • Document the principles for determining remuneration of members of the governing body (see Remuneration policy).
  • Record the assessment of the fitness and propriety of candidates.
  • Have a resignation and removal policy which provides clarity on who can remove a member of the governing body, under what circumstances and the steps for doing so.
  • Follow any scheme rule or regulation requiring representation of particular bodies or groups and have a process to ensure this is maintained.

Governing bodies of relevant multi-employer schemes must:

  • follow specific rules on representation and independence of the trustee boardRE1, including restrictions on how long some trustees can remain in post as non-affiliated trustees
  • have at least three trustees, or where there is a sole corporate trustee that isn’t a professional trustee body (a professional trustee body is treated as one trustee), at least three directorsRE2
  • appoint non-affiliated trustees in an open and transparent wayRE3
  • have a process in place to encourage scheme members, or their representatives, to speak up about matters that affect themRE4

Legal references

RE1Regulations 27-28 Occupational Pension Schemes (Scheme Administration) Regulations 1996
[Regulations 27-28 Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997]

RE2Regulation 27 (1) Occupational Pension Schemes (Scheme Administration) Regulations 1996
[Regulation 27 (1) Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997]

RE3Regulation 28 (1) Occupational Pension Schemes (Scheme Administration) Regulations 1996
[Regulation 28 (1) Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997]

RE4Regulation 29 Occupational Pension Schemes (Scheme Administration) Regulations 1996
[Regulation 29 Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997]