EC Meeting July 2017

There is no legal requirement whereby pensioner members must be given the opportunity to appoint one of their number to be a trustee. They must be given a role in the nomination process, but they do not have to be given a role in the selection process if there are more nominations than vacancies. The current deed requires the appointment of six trustees, but the number is not fixed by law. If the number is to change, an amendment to the deed will be required. That would require the consent of the current trustees, and the consent of PCS as the other participating employer. You could decide that a greater or smaller number is more suitable. You could decide to change the proportions of employer- and member-nominated trustees. The only limitations on the choice you make are:

(a) the minimum requirement for one third member-nominated trustees

(b) the feasibility of securing a quorum for a trustee meeting; and

(c)

the need for PCS and trustee consent.

If they are asked to consent to an amendment, the trustees would make their decision acting in what they believe to be the best interests of the Scheme’s members.

(i)

Employer-nominated trustees

There is no reason why the Executive could not adopt a policy whereby the General Secretary and Chair are to be nominated as trustees whenever circumstances permit, without making that a requirement of the trust deed. The trust deed could simply say that a specified number of the trustees are selected by the Executive, leaving it to the Executive to decide who to select in accordance with whatever policy it adopts. The current, and any future General Secretary will be an active member (as I understand it), and if that is the case then it may never suit to have him or her as an employer-nominated trustee: he or she will be a member-nominated trustee instead. There is no requirement for the Chair of the GFTU to be a trustee, but in view of the substantial financial commitment which the Scheme represents, I should not be surprised if the Executive adopted a policy that the Chair should be a trustee. If you retain the principle that the number of trustees should be six, of whom half are nominated by the Executive, and that the Chair of the GFTU should be a trustee, the Executive would have to make two other nominations excluding the General Secretary.

(ii)

Member-nominated trustees

The nomination and selection process must be determined by the trustees – that is a legal requirement. The only influence the Executive can have is in putting forward proposals for

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