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Change 1
As published
7 Appointment of trustees.
(1) Where a trustee of a trust scheme is removed by an order under section 3, by section 3A or ... by reason of his disqualification, the Authority may by order appoint another trustee in his place.
(2) Where a trustee appointed under subsection (1) is appointed to replace a trustee appointed under section 23(1), sections 22 to 26 shall apply to the replacement trustee as they apply to a trustee appointed under section 23(1).
(3) The Authority may also by order appoint a trustee of a trust scheme where they are satisfied that it is reasonable to do so in order—
(a) to secure that the trustees as a whole have, or exercise, the necessary knowledge and skill for the proper administration of the scheme,
(aa) where subsection (3A) or (3B) applies, to secure that the trustees as a whole have the skills and knowledge necessary for ensuring that the scheme, or an arrangement under it, improves its performance as regards the provision of value for money;
(b) to secure that the number of trustees is sufficient for the proper administration of the scheme, ...
(c) to secure the proper use or application of the assets of the scheme , ...
(ca) to secure compliance with the duties of trustees under Chapter 6 of Part 2 of the Pension Schemes Act 2026, or
(d) otherwise to protect the interests of the generality of the members of the scheme.
(3A) This subsection applies where—
(a) the trust scheme is a regulated VFM scheme (as defined in section 11(1)(a) of the Pension Schemes Act 2026), and
(b) the most recent rating assigned to the scheme under section 15(1) of that Act was an intermediate or “not delivering” rating.
(3B) This subsection applies where—
(a) an arrangement under the trust scheme is a regulated VFM arrangement, and
(b) the most recent rating assigned to the arrangement under section 15(1) of that Act was an intermediate or “not delivering” rating.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) The power to appoint a trustee by an order under this section includes power by such an order—
(a) to determine the appropriate number of trustees for the proper administration of the scheme,
(b) to require a trustee appointed by the order to be paid fees and expenses out of the scheme’s resources,
(c) to provide for the removal or replacement of such a trustee.
(5A) An application may be made to the Authority in relation to a trust scheme by—
(a) the trustees of the scheme,
(b) the employer, or
(c) any member of the scheme,
for the appointment of a trustee of the scheme under subsection (3)(a) or (c).
(6) Regulations may make provision about the descriptions of persons who may or may not be appointed trustees under this section.
(7) In this section “regulated VFM arrangement” and “regulated VFM scheme” are to be interpreted in accordance with section 21 of the Pension Schemes Act 2026.
Your change, as a redline
7 Appointment of trustees.
(1) Where a trustee of a trust scheme is removed by an order under section 3, by section 3A or ... by reason of his disqualification, the Authority may by order appoint another trustee in his place.
(2) Where a trustee appointed under subsection (1) is appointed to replace a trustee appointed under section 23(1), sections 22 to 26 shall apply to the replacement trustee as they apply to a trustee appointed under section 23(1).
(3) The Authority may also by order appoint a trustee of a trust scheme where they are satisfied that it is reasonable to do so in order—
(a) to secure that the trustees as a whole have, or exercise, the necessary knowledge and skill for the proper administration of the scheme,
(aa) where subsection (3A) or (3B) applies, to secure that the trustees as a whole have the skills and knowledge necessary for ensuring that the scheme, or an arrangement under it, improves its performance as regards the provision of value for money;
(b) to secure that the number of trustees is sufficient for the proper administration of the scheme, ...
(c) to secure the proper use or application of the assets of the scheme , ...
(ca) to secure compliance with the duties of trustees under Chapter 6 of Part 2 of the Pension Schemes Act 2026, or
(d) otherwise to protect the interests of the generality of the members of the scheme.
(3A) This subsection applies where—
(a) the trust scheme is a regulated VFM scheme (as defined in section 11(1)(a) of the Pension Schemes Act 2026), and
(b) the most recent rating assigned to the scheme under section 15(1) of that Act was an intermediate or “not delivering” rating.
(3B) This subsection applies where—
(a) an arrangement under the trust scheme is a regulated VFM arrangement, and
(b) the most recent rating assigned to the arrangement under section 15(1) of that Act was an intermediate or “not delivering” rating.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) The power to appoint a trustee by an order under this section includes power by such an order—
(a) to determine the appropriate number of trustees for the proper administration of the scheme,
(b) to require a trustee appointed by the order to be paid fees and expenses out of the scheme’s resources,
(c) to provide for the removal or replacement of such a trustee.
(5A) An application may be made to the Authority in relation to a trust scheme by—
(a) the trustees of the scheme,
(b) the employer, or
(c) any member of the scheme,
for the appointment of a trustee of the scheme under subsection (3)(a) or (c).
(6) Regulations may make provision about the descriptions of persons who may or may not be appointed trustees under this section.
(7) In this section “regulated VFM arrangement” and “regulated VFM scheme” are to be interpreted in accordance with section 21 of the Pension Schemes Act 2026.
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