The Pensions Regulator

Code of practice 08
MNT/MND - putting arrangements in place

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Arrangements

What are arrangements?

47. The arrangements are the scheme's procedures for complying with the requirements and must provide:
    • for a nomination process in which at least active and pensioner members or an organisation that adequately represents them are eligible to participate²⁴;
    • for a selection process in which some or all of the members are eligible to participate²⁵;
    • that the nomination and selection process must take place within a reasonable period of any requirement to appoint an MNT²⁶;
    • that where a vacancy is not filled because insufficient nominations are received, the nomination and selection process must be repeated at reasonable intervals until the vacancy is filled²⁷;
    • that, if approval is required by the employer, a non-member of the scheme must have the employer's approval to qualify for selection as an MNT²⁸;
    • that where the number of nominations received is equal to or less than the number of vacancies, the nominees may be deemed to be selected²⁹;
    • that, unless the removal of an MNT is by a vote of the membership under the scheme rules, the removal of an MNT requires the agreement of all the other trustees³⁰;
    • that an MNT cannot be excluded from the exercise of any trustee function only on the basis of being an MNT³¹; and
    • that except where provided for in the rules of the scheme, the number of MNTs can only exceed one-third with the employer's approval³².

General considerations

48. As with any trustee appointment, trustees should consider other aspects of an MNT appointment and these may be reflected in the arrangements. Trustees should consider the scheme rules and should consider consulting with the employer on these matters such as:
    • eligibility criteria³³;
    • term of office;
    • effect of resignation of a trustee; and
    • effect of a trustee ceasing to be a member of the scheme.

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