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”; and
(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.