The Pensions (Northern Ireland) Order 1995

Member-nominated trustees and directors N.I.

Requirement for member-nominated trustees N.I.

F1 16.—(1) The trustees of a trust scheme mustF2 (subject to Article 17) secure—

(a) that such arrangements forF3 persons selected by[F4 qualifying] members of the scheme to be trustees of the scheme as are required by this Article are made, and

(b) that those arrangementsF2 , and the appropriate rules, are implemented.

(2) Persons who become trustees under the arrangements required by paragraph (1) are referred to in this Part as “member-nominated trustees”.

(3) The arrangements must provide—

(a) for any person who has been nominated and selectedF3 in accordance with the appropriate rules to become a trustee by virtue of his selection, and

(b) for the removal of such a person to require the agreement of all the other trustees.

(4) Where a vacancy for a member-nominated trustee is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance withF3 the appropriate rules.

(5) The arrangements must provide for the selection of a person as a member-nominated trustee to have effect for a period of not less than three nor more than six yearsF5 .

(6) The arrangements must provide for the number of member-nominated trustees to be—

(a) at least two or (if the scheme comprises less than 100[F4 qualifying] members) at least one, and

(b) at least one-third of the total number of trustees;

but the arrangements must not provide for a greater number of member-nominated trustees than that required to satisfy that minimum unless the employer has given his approval to the greater number.

F5 (7) The arrangements must not provide for the functions of member-nominated trustees to differ from those of any other trustee but, for the purposes of this paragraph—

(a) any provision made by an order under Article 8(4), and

(b) Article 25(2),

shall be disregarded.

(8) F3 The arrangements must provide that, if a member-nominated trustee who was a[F4 qualifying] member of the scheme when he was appointed ceases to be[F4 such a member], he ceases to be a trustee by virtue of that factF5 .F6

F1 prosp. (until 06/04/06) rep. by 2005 NI 1

F2 prosp. rep. by 2000 c. 4 (NI)

F3 prosp. subst.by 2000 c. 4 (NI)

F4 1999 NI 11

F5 prosp. inserted by 2000 c. 4 (NI)

F6 prosp. added by 2000 c. 4 (NI)

F7 Exceptions N.I.

F8 17.—(1) Article 16 does not apply to a trust scheme if—

(a) a proposal has been made by the employer for the continuation of existing arrangements, or the adoption of new arrangements, for selecting the trustees of the scheme,

(b) the arrangements referred to in the proposal are for the time being approved under the statutory consultation procedure, and

(c) such other requirements as may be prescribed are satisfied.

(2) Where—

(a) by virtue of paragraph (1), Article 16 does not apply to a trust scheme, and

(b) the employer's proposal was for the adoption of new arrangements which, in consequence of paragraph (1)(b), are adopted,

the trustees shall secure that the proposed arrangements are made and implemented.

(3) For the purposes of this Article, the arrangements for selecting the trustees of a scheme include all matters relating to the continuation in office of the existing trustees, the selection or appointment of new trustees and the terms of their appointments and any special rules for decisions to be made by particular trustees.

(4) Article 16 does not apply to a trust scheme if—

(a) the trustees of the scheme consist of all the[F9 qualifying] members, or

(b) it falls within a prescribed class.

(5) Article 10 applies to any employer who—

(a) makes such a proposal as is referred to in paragraph (1)(a), but

(b) fails to give effect to the statutory consultation procedure.

F7 prosp. rep. by 2000 c. 4 (NI)

F8 prosp. (until 06/04/06) rep. by 2005 NI 1

F9 1999 NI 11

Corporate trustees: member-nominated directors N.I.

F10 18.—(1) Where a company is a trustee of a trust schemeF11 and the employer is connected with the company or prescribed conditions are satisfied, the company mustF12 , subject to Article 19 secure—

(a) that such arrangements forF11 persons selected by the[F13 qualifying] members of the scheme to be directors of the company as are required by this Article are made, and

(b) that those arrangements,F14 and the appropriate rules, are implemented.

(2) Persons who become directors under the arrangements required by paragraph (1) are referred to in this Part as “member-nominated directors”.

(3) The arrangements must provide—

(a) for any person who has been nominated and selectedF11 in accordance with the appropriate rules to become a director by virtue of his selection, and

(b) for the removal of such a person to require the agreement of all the other directors.

(4) Where a vacancy for a member-nominated director is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance withF11 the appropriate rules.

(5) The arrangements must provide for the selection of a person as a member-nominated director to have effect for a period of not less than three nor more than six yearsF15 .

(6) The arrangements must provide for the number of member-nominated directors to be—

(a) at least two or (if the scheme comprises less than 100[F13 qualifying] members) at least one, and

(b) at least one-third of the total number of directors;

but the arrangements must not provide for a greater number of member-nominated directors than that required to satisfy that minimum unless the employer has given his approval to the greater number.

F15 (7) F11 The arrangements must provide that, if a member-nominated director who was a[F13 qualifying] member of the scheme when he was appointed ceases to be[F13 such a member], he ceases to be a director by virtue of that factF15 .

F11 (8) Where this Article applies to a company which is—

(a) a trustee of two or more trust schemes, and

(b) a wholly-owned subsidiary (within the meaning of Article 4 of the Companies (Northern Ireland) Order 1986F16 ) of a company which is the employer in relation to those schemes,

the following provisions apply as if those schemes were a single scheme and the members of each of the schemes were members of that scheme, that is: the preceding provisions of this Article, Article 20 and Article 21(7).F17

F10 prosp. (until 06/04/06) rep. by 2005 NI 1

F11 prosp. subst. by 2000 c. 4 (NI)

F12 prosp. rep. by 2000 c. 4 (NI)

F13 1999 NI 11

F14 prosp. rep. by 2000 c. 4 (NI)

F15 prosp. inserted by 2000 c. 4 (NI)

F16 1986 NI 6

F17 prosp. added by 2000 c. 4 (NI)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F18 N.I.

F18 Art. 18A inserted (prosp.) by 2000 c. 4 (N.I.)

Art. 18A repealed (6.4.2006) by Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 291, Sch. 11; S.R. 2005/543, art. 2(6), Sch. Pt. 6

Corporate trustees: exceptions N.I.

F19 F20 19.—(1) Article 18 does not apply to a company which is a trustee of a trust scheme if—

(a) a proposal has been made by the employer for the continuation of existing arrangements, or the adoption of new arrangements, for selecting the directors of the company,

(b) the arrangements referred to in the proposal are for the time being approved under the statutory consultation procedure, and

(c) such other requirements as may be prescribed are satisfied.

(2) Where—

(a) by virtue of paragraph (1), Article 18 does not apply to a company which is a trustee of a trust scheme; and

(b) the employer's proposal was for the adoption of new arrangements which, in consequence of paragraph (1)(b), are adopted,

the company must secure that the proposed arrangements are made and implemented.

(3) For the purposes of this Article, the arrangements for selecting the directors of a company include all matters relating to the continuation in office of the existing directors, the selection or appointment of new directors and the terms of their appointments and any special rules for decisions to be made by particular directors.

(4) Article 18 does not apply to a company which is a trustee of a trust scheme if the scheme falls within a prescribed class.

(5) Article 10 applies to any employer who—

(a) makes such a proposal as is referred to in paragraph (1)(a), but

(b) fails to give effect to the statutory consultation procedure.

F19 prosp. rep. by 2000 c. 4 (NI)

F20 prosp. (until 06/04/06) rep. by 2005 NI 1

Selection, and eligibility, of member-nominated trustees and directors N.I.

F21 F22 20.—(1) For the purposes of Articles 16 to 21, the appropriate rules are rules which—

(a) make the provision required or authorised by this Article, and no other provision, and

(b) are for the time being approved under the statutory consultation procedure or, if no rules are for the time being so approved, are prescribed rules;

and the arrangements required by Article 16 or 18 to be made must not make any provision which is required or authorised to be made by the rules.

(2) The appropriate rules—

(a) must determine the procedure for the nomination and selection of a person to fill a vacancy as a member-nominated trustee, and

(b) may determine, or provide for the determination of, the conditions required of a person for filling such a vacancy.

(3) The appropriate rules must provide for a member-nominated trustee to be eligible for re-selection at the end of his period of service.

(4) Where a vacancy for a member-nominated trustee is not filled because insufficient nominations are received, the appropriate rules must provide for determining the next period in which persons may be nominated and selected in accordance with the rules, being a period ending at a prescribed time.

(5) The appropriate rules must provide that, where the employer so requires, a person who is not a[F23 qualifying] member of the scheme must have the employer's approval to qualify for selection as a member-nominated trustee.

(6) Where Article 18 applies to a trust scheme, references in this Article to a member-nominated trustee include a member-nominated director.

F21 prosp. rep. by 2000 c. 4 (NI)

F22 prosp. (until 06/04/06) rep. by 2005 NI 1

F23 1999 NI 11

Member-nominated trustees and directors: supplementary N.I.

F24 21.—(1) If, in the case of a trust scheme—

(a) such arrangements as are required by Article 16(1) orF25 17(2) to be made have not been made, or

(b) arrangements required by Article 16(1) orF25 17(2) to be implementedF26 , or the appropriate rules, are not being implemented,

F27 Articles 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.

(2) If, in the case of a company which is a trustee of a trust scheme—

(a) such arrangements as are required by Article 18(1) orF25 19(2) to be made have not been made, or

(b) arrangements required by Article 18(1) orF25 19(2) to be implementedF26 , or the appropriate rules, are not being implemented,

F27 Articles 3 and 10 apply to the company.

F27 (3) Regulations may make provision for determining the time by which—

(a) such arrangementsF26 (or further arrangements) as are referred to in Article 16(1),F25 17(2), 18(1) or 19(2) are required to be made,F26 and

F26 (b) trustees or directors are required to be selected in pursuance of the appropriate rules.

F26 (4) Regulations may make provision for determining when any approval under the statutory consultation procedure—

(a) of the appropriate rules, or

(b) of arrangements for selecting the trustees of a scheme, or the directors of a company, given on a proposal by the employer

is to cease to have effect.

(5) The Department may by regulations modify Articles 16 toF25 20 and this Article in their application to prescribed cases.

F27 (6) In ArticlesF25 17 to 20F26 and this Article,

[F28 (a) “qualifying member”, in relation to a trust scheme, means a person who is an active, deferred or pensioner member of the scheme,F26 and]

[F28 (b)] F26 “the statutory consultation procedure” means the prescribed procedure for obtaining the views of[F28 qualifying] members of schemes.

(7) For the purposes of this and those Articles—

(a) approvalF25 of the appropriate rules, or of arrangements, under the statutory consultation procedure must be given by—

(i) the active and pensioner members of the scheme, and

(ii) if the trustees so determine, such deferred members of the scheme as the trustees may determine,

taken as a whole,F26 and

F26 (b) references to the approval of the appropriate rules, or of arrangements under Article 17 or 19, by any persons under the statutory consultation procedure are to prescribed conditions in respect of those rules or, as the case may be, arrangements being satisfied in the case of those persons in pursuance of the procedure, and those conditions may relate to the extent to which those persons have either endorsed, or not objected to, the rules or, as the case may be, arrangements.

F24 prosp. (until 06/04/06) rep. by 2005 NI 1

F25 prosp. subst. by 2000 c. 4 (NI)

F26 prosp. rep. by 2000 c. 4 (NI)

F27 prosp. inserted by 2000 c. 4 (NI)

F28 1999 NI 11