ARRANGEMENTS FOR NOMINATING AND SELECTING MEMBER-NOMINATED TRUSTEES
(A) Arrangements for nominating and selecting member-nominated trustees (MNTs) under section 241 of the Pensions Act 2004 (PA 2004).
1. Definition
In these arrangements, active member, pensioner member and deferred member have the meanings given in section 124(1) of the Pensions Act 1995 (PA 1995). Member means any active member, deferred member or pensioner member.
2. Consulting the Employer
The trustees note that the PA 2004 does not require them to consult the principal employer of the Scheme. However, the trustees have consulted the PARTY_1_NAME (Principal Employer) when adopting these arrangements in acknowledgment of its interests in the Scheme and because its agreement is required on certain matters.
3. Scheme is not exempt from the MNT requirements
3.1 The Scheme does not fall within any exemption from the MNT requirements in the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations 2006 (SI 2006/714).
3.2 The current trustees of the Scheme are all individuals. Therefore, the Scheme has to comply with the MNT requirements of section 241 of PA 2004 and not the member-nominated director requirements of section 242 of the PA 2004.
4. Number of MNTs
4.1 The Scheme currently has [NUMBER] trustees. To ensure that at least one-third of the total number of trustees are MNTs, at least [NUMBER] MNTs are to be appointed.
6. Employer consent required if non-members are nominated
7. Persons who cannot be nominated
A person cannot be nominated or selected as an MNT:
(a) if he is under the age of 18 or is disqualified from being a trustee of a pension scheme under section 29 of the PA 1995; or
(b) [he does not satisfy the following eligibility requirements:]
[ADDITIONAL ELIGIBILITY REQUIREMENTS].
8. Selecting MNTs
MNTs shall be selected as follows:
(a) if the number of candidates nominated equals the numbers of vacancies for MNTs, the candidates nominated shall be selected as MNTs;
(b) if the number of nominations is less than the number of vacancies, the nominees shall be selected as MNTs and (subject to paragraph 14) any unfilled positions shall be left vacant;
(c) if no nominations are received (subject to paragraph 14), the positions shall be left vacant; and
(d) if there are more nominations than the number of vacant positions, MNTs shall be selected as set out in paragraph 9.
9. Ballot
If the number of nominations exceeds the number of vacancies, the MNTs shall be selected from among the nominees in the following way:
(a) a ballot shall be held at which all active members [pensioner members] [and deferred members] shall be invited to vote;
(b) each person entitled to vote shall have only one vote for each vacancy and cannot cast more than one vote per candidate. The voting form of any person who exceeds the number of votes shall be invalid;
(c) a voting form in the form annexed to these arrangements (but subject to any amendments that the trustees decide) shall be sent to each person entitled to vote. Votes shall only be cast on that form;
(d) a vote shall not be valid if it is received by [NAME] later than the date specified on the voting form. The trustees shall decide the return date for the form. The date shall not be earlier than [ONE MONTH] from the date of the notice inviting voters to vote;
(e) the [NUMBER] successful candidates shall be those candidates who receive the highest number of votes; and
(f) if there is a tie in the number of votes between two or more candidates for a vacancy, the trustees shall, in their absolute discretion, decide which of the tying candidates shall be selected as MNTs.
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