Appointing an Independent Trustee
The allocation of power to appoint or remove a trustee is usually included within the scheme documentation. The power to appoint a trustee is often given to the employer but occasionally given to the existing trustees of the pension scheme.
Full compliance with the method set out in the trust deed for the appointment and removal of trustees is required but will usually concern involve drafting a deed of appointment.
The process of appointing or removing trustees does not differ when an independent professional trustee is involved. However, an occupational pension scheme is exempt from the requirement to have Member Nominated Trustees (MNT) where the sole trustee is independent.
Sometimes a Court or the Pensions Regulator may make the decision to appoint a trustee to take over from the existing trustees. The Pensions Regulator maintains its Independent Trustee Register for this purpose.
A trustee appointed by The Pensions Regulator may be appointed with the ability to exercise powers exclusively without the agreement of other trustees or may simply be appointed as an additional trustee to work with the existing trustees and strengthen the trustee board.
Dalriada Trustees can assist in ensuring full compliance with governing documentation including instructing scheme advisers in the production of necessary deeds or amendments.