Part IIPensions
Chapter IIOccupational and Personal Pension Schemes
Selection of trustees and of directors of corporate trustees
43Member-nominated trustees
1
Section 16 of the [1995 c. 26.] Pensions Act 1995 (requirements for trustees to be nominated and selected by members of the scheme) shall be amended in accordance with subsections (2) to (8) of this section.
2
In subsection (1) (duty of trustees to make arrangements for selection of member-nominated trustees)—
a
the words “(subject to section 17)” and in paragraph (b), the words “, and the appropriate rules,” shall be omitted; and
b
in paragraph (a), for “persons selected” there shall be substituted “the selection of persons nominated”.
3
In subsection (3)(a) (selected persons to be trustees), for “in accordance with the appropriate rules” there shall be substituted “as a member-nominated trustee”.
4
In subsection (4) (procedure for filling vacancies unfilled because of insufficient nominations), for “the appropriate rules” there shall be substituted “regulations”.
5
In subsection (5) (period of service as a member-nominated trustee), after “six years” there shall be inserted “but for a member-nominated trustee to be eligible for selection again at the end of any period of service as such a trustee.”
6
After subsection (6) there shall be inserted—
6A
The arrangements must provide that, where the employer so requires, a person who is not a qualifying member of the scheme must have the employer’s approval to qualify for selection as a member-nominated trustee.
7
In subsection (8) (persons ceasing to be member-nominated trustees on ceasing to be qualifying members of the scheme)—
a
for “The arrangements must” there shall be substituted
The arrangements—
a
must
b
at the end there shall be inserted
; and
b
may provide for a member-nominated trustee who—
i
is a qualifying member of one of the following descriptions, that is to say, an active, deferred or pensioner member, and
ii
ceases (without ceasing to be a qualifying member) to be a qualifying member of that description,
to cease, by virtue of that fact, to be a trustee.
8
After subsection (8) there shall be inserted—
9
Regulations may make provision in relation to arrangements under this section—
a
supplementing the requirements of this section as to the matters to be contained in the arrangements; and
b
providing for the manner in which, and the time within which, persons are, for the purposes of the arrangements, to be nominated and selected as member-nominated trustees.
10
This section does not apply in the case of a trust scheme if—
a
every member of the scheme is a trustee of the scheme and no other person is such a trustee;
b
every trustee of the scheme is a company; or
c
the scheme is of a prescribed description.
9
Section 17 of that Act (exceptions to section 16 where the employer’s alternative proposals are approved) shall cease to have effect.