14 September 2004 - New proposals for member involvement in pension schemes
New proposals to ensure that 50% of pension scheme trustees are member-nominated were announced today by Alan Johnson, Secretary of State for Work and Pensions at the TUC Conference in Brighton.
When implemented, the changes which will form part of the Pensions Bill, will move from the present requirement of one-third member-nominated trustees to half. This will encourage more pension scheme members to have a direct involvement with the running of their scheme.
Secretary of State for Work and Pensions, Alan Johnson said:
“Everyone agrees that member nominated trustees are a good idea. If the workforce is involved in the running of their scheme it can make them feel they have a real stake in their pension provision and could persuade more people to join. It makes sense to have a genuine partnership in an area as important as pensions.
“This change will mean that trustee boards will have a wider range of skills and experiences to draw upon. We want to see good trustees and well run schemes, and putting more member trustees in every scheme under new simpler legislation will help ensure we have that.
“It is another example of how the Pensions Bill is protecting the pension rights of workers. With the creation of the Pension Protection Fund, improved consultation, better information about pensions and allowing people to defer their state pension we are addressing the key occupational pensions issues.”
The new power enabling this change will be included in the Pension Bill at the Report stage in the Lords. Discussions with industry, employers and schemes will take place about how best the changes can be implemented, especially with those small and medium sized schemes that may not have a member-nominated trustee at present. Discussions will also recognise that schemes will be implementing the new requirement on trustees to have the appropriate knowledge and understanding across their responsibilities.
Notes for editors
- The Pensions Bill was published on 12th February and can be found at http://www.publications.parliament.uk/pa/cm200304/cmbills/057/2004057.htm
- Secretary of State, Alan Johnson was speaking at the TUC Congress at the Brighton Conference Centre.
Press office media enquiries: please contact Stewart Todd – 020 7238 0643
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk