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The Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations (Northern Ireland) 1996

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Explanatory Note

(This note is not part of the Regulations.)

These Regulations concern the selection and appointment of member-nominated trustees and directors under Articles 16 to 21 of the Pensions (Northern Ireland) Order 1995 (“the Order”).

Regulations 1 and 2 provide for the citation, commencement and interpretation of the Regulations.

Regulation 3 provides for determining the number of members which a scheme comprises.

Regulations 4 and 6 provide for exceptions to the requirement to make arrangements for member-nominated trustees or directors.

Regulation 5 makes provision for extending the provisions of Article 18 of the Order to schemes where all the trustees are corporate bodies.

Regulation 7 makes provision as to the timing of the implementation of the member-nominated trustee requirement.

Regulation 8 and Schedule 1 make provision as to approval by scheme members of the appropriate rules for selecting member-nominated trustees. Regulation 8 and Part I of Schedule 2 provide rules for selecting member-nominated trustees where there are no such approved rules under the scheme.

Regulation 9 and Schedule 1 make provision as to the circumstances in which the requirement to make arrangements for member-nominated trustees will not apply if alternative arrangements are proposed and as to the procedure on such a proposal.

Regulation 10 makes provision as to the time limits for making such alternative arrangements.

Regulation 11 makes provision as to the circumstances in which trustees may modify schemes by resolution to increase the overall number of trustees.

Regulation 12 makes provision as to the continuation in office of a member-nominated trustee notwithstanding that the requirements have ceased to apply.

Regulations 13 to 17 make similar provision to regulations 7 to 10 and 12 but in relation to member-nominated directors.

Regulation 18 provides for two or more schemes sponsored by the same employer or a subsidiary of the employer’s company to be aggregated if the trustee is one or more companies.

Regulation 19 and Schedule 3 make provision for modification of the legislation for multi-employer schemes; for schemes where the employer is sole trustee; for schemes where a company is sole trustee of and sole employer in relation to a scheme; to deal with schemes with few or no active or no pensioner members; to allow the minimum period of office for a member-nominated trustee or director to be reduced in certain circumstances; to take account of Article 311 of the Companies (Northern Ireland) Order 1986 in relation to the removal of member-nominated directors and to cater for companies which are trustees of schemes some of which are and some of which are not schemes to which the requirements as to member-nominated directors apply.

Regulation 20 sets out the circumstances in which appropriate rules and alternative arrangements cease to have effect.

Regulation 21 provides rules in the case where there are insufficient nominations for member-nominated trustees or directors.

Regulation 22 provides for trustees and employers to keep records in relation to the statutory consultation procedure.

Regulation 23 makes provision in relation to notices to be given under these Regulations.

Regulation 24 and Schedule 4 make transitional provision so that where the employer gives certain notices on or after 13th October 1996, things done on or after that date have a similar effect to that they would have if Articles 16 to 21 and these Regulations were in operation.

The Pensions (1995 Order) (Commencement No. 2) Order (Northern Ireland) 1996 (S.R. 1996 No. 91 (C. 4)) provides for the coming into operation of Articles 17 to 21, 49, 68, 115 and 122 of the Order, the enabling provisions under which these Regulations are made, on 6th April 1996 for the purpose only of authorising the making of regulations. As the Regulations are made before the end of a period of six months from the commencement of those Articles, the requirement for consultation under Article 117(1) of the Order does not apply by virtue of paragraph (2)(c) of that Article.

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