Q&As

A former member-nominated director (MND) (who has just lost their position as MND) of a corporate trustee would like to challenge the result of the election as they believe one of the newly elected MNDs did not follow the rules of the process. Should the former MND bring a challenge through the scheme’s IDRP process or go straight to the Pensions Regulator?

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Published on LexisPSL on 18/03/2020

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • A former member-nominated director (MND) (who has just lost their position as MND) of a corporate trustee would like to challenge the result of the election as they believe one of the newly elected MNDs did not follow the rules of the process. Should the former MND bring a challenge through the scheme’s IDRP process or go straight to the Pensions Regulator?

We have assumed that the pension scheme concerned is a defined benefit scheme and that the former MND is a member of the scheme.

Whether the former MND should first challenge the result of the MND election through the pension scheme’s internal dispute resolution procedure or complain directly to the Pensions Regulator depends on the nature and seriousness of the breach.

Under section 10 of the Pensions Act 1995, the Pensions Regulator has the power to fine trustees for breach of the statutory requirement to put in place and implement arrangements which provide for at least one-third of the total number of directors of a corporate trustee to be MNDs under section 242 of the Pensions Act 2004, and the Regulator’s code of practice on MNTs/MNDs states that trustees should comply with that requirement in accordance with the principles of proportionali

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