What does a MND do?
Member Nominated Directors (MNDs) are Directors of the Trustee Board, which is responsible for the administration of the Defined Benefit and Defined Contribution sections of the IBM Pension Plan, and the IT Solutions Pension Scheme.
They attend Trustee meetings five times a year, are appointed to at least one of the Trustee Committees (such as the Investment Committee) and are involved in decision making. MNDs will be involved in areas such as:
- Finances and funding;
- Investment; and
- Payment of benefits.
MNDs need to understand the IBM pension plans and their role in the plans' administration in order to make informed and proper decisions and be able to safeguard the plans. They need to have a good understanding of plan documents (such as the Trust Deed and Rules), of pensions and Trust law and of the principles of funding and investment within pension schemes - all this knowledge can be gained through training.
Thorough preparation is required for all meetings and sometimes the issues to be considered are quite complex. However, decision making is supported by advice from experts, including the Scheme Actuary, legal and investment advisers and pension experts.
What experience is needed for the role?
None, although relevant experience is helpful - for example, in pensions, investment, finance or governance.
Our MNDs are given plenty of support and training to help them undertake their duties effectively. Training programmes are tailored to their individual needs.
MNDs are expected to complete the Trustee Toolkit on the Pensions Regulator's website (for this reason, access to the internet is essential). They are also encouraged to sit the examination "Award in Pensions Trusteeship", which provides a good grounding for new Trustee Directors and is sponsored by the Pensions Management Institute.
Who can be a MND?
Employees (who are members of either the M Plan or I Plan), Hybrid Deferred and Retiree members of the IBM pension plans are eligible to be nominated to become MNDs. Deferred members are not eligible.
Employees must have been a plan member for two years (including service transferred in and any service as a Hybrid Deferred member). Retirees are members who are receiving an IBM pension, which includes active members who are receiving an IBM pension.
In certain situations, members may not be eligible to become MNDs - for example, if they are under age 18 or an undischarged bankrupt. Full details can be found on the Arrangements section by clicking here.
What would I get from the role?
The role of a Trustee Director is a challenging one, with the opportunity to gain new skills, while giving something back. You gain knowledge and experience of areas such as finance, investment, governance and legislation. The role requires commitment and dedication, but is hugely rewarding, as it directly influences the lives of plan members.
Are MNDs paid?
MNDs are paid fees as follows:
- Retiree MNDs are paid a fee of £6,000 a year and travelling expenses are reimbursed.
- Employee MNDs are paid a fee of £6,000 a year and travelling expenses are reimbursed. They are also given time during the working day to attend training programmes and to prepare for and attend Trustee meetings.
In recognition of the time and skill needed for the role and to record the contribution made to the work of the Trustee during the year, the Trustee Chairman will write to the manager of each Employee MND each year, emphasising their contribution.
How long is the term of office?
MNDs are appointed for a four year term of office. At the end of that period, a new election process is run and MNDs can stand for re-election if they wish to do so.
Downloads
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| File | Size | Uploaded | Link |
|---|---|---|---|
 Trustee Director Role description |
30.50KB | 2011-12-29 | Download |
Last Updated: 03/01/2012
