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The Pensions (Northern Ireland) Order 1995

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This is the original version (as it was originally made).

Requirement for member-nominated trustees

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

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

(b)that those arrangements, 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 selected 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 with 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 years.

(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 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.

(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) The arrangements must provide that, if a member-nominated trustee who was a member of the scheme when he was appointed ceases to be a member of the scheme, he ceases to be a trustee by virtue of that fact.

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