After the 2004 Pensions Act was brought in, with the requirement to give pensioners and other scheme members with additional powers over who is responsible for their pension scheme, the Pension Regulator has published proposals that give pension schemes six months to ensure that a third of trustees are member nominated. They have proposed that after this date, they will have another six months to elect them, although the exact date when the rules will start has yet to be finalised Member nominated trustees will have to be nominated by a process that either involves all active members and pensioners or organisations that represent them. This can include recognised trade unions, staff committees and also pensioner organisations. They can then be selected by methods including ballot, existing selection panels or by existing trustees. If there are not enough nominations, the process must be re-run after 12 months.
Our view
Having trustees who are nominated, i.e. voted in by members - member nominated trustees - is a good thing but the problem will, as has been in the past, be getting employees or representatives to become trustees. This will be easier in bigger companies than small.