Jungheinrich Member Nominated Trustee

 
The Scheme currently has five Trustees: one independent chair, two nominated by Jungheinrich UK Limited
(‘the Company’) and two member-nominated Trustees (known as MNTs).
 
The independent chair of Trustees is currently:

• Evelyn Partners, represented by Phil Harwood

 
The Company-nominated Trustees are currently:

• Christopher Reinke
• Silke Herrera

 
The MNTs are:

• Barry Richards
• Karen Taylor

 
Pensions law requires that Trustees make arrangements to enable members to nominate and select one-third of the Trustees of the Scheme.
 
MNTs currently serve for a period of five years and the last full MNT selection process was completed in September 2021. Barry Richards’ current period of office is due to expire in August 2024 after standing for a re-selection for a three-year period in September 2021.
 
The Trustees have agreed to keep the standard term for MNTs to be five years, and that the terms should continue to be staggered to provide continuity on the Trustee Board. To achieve this, for the newly appointed MNT there will be a five-year term as Karen Taylor’s current period of office is due to expire in August 2026.
 
Therefore, in line with the rules governing the Scheme’s MNT arrangements, the Trustees are inviting members to apply for the MNT position. The period of office will run from September 2024 for a term of five years until August 2029.
 
Information regarding the MNT arrangements for our Scheme, as well as further details of the role of an MNT are attached to this announcement. You are invited to apply for selection, further details on how to do so are included in section 6 “Nomination of MNTs” of the rules of the MNT arrangements below.
 
Following the nomination process, the selection method will be carried out by a panel chosen by the Trustees.
 
Applications can be sent by completing the form below.
 
The outcome of the nomination and selection process will be communicated to you in due course.
 

1. Introduction

The Trustees of the Jungheinrich UK Limited Retirement Benefits Scheme (‘the Scheme’) are required to put in place arrangements to enable members to nominate and select one-third of the Trustees of the Scheme (known as MNT arrangements). This document is intended to explain the MNT arrangements for the Scheme.
 
Under the MNT arrangements for the Scheme, deferred members who are currently employed by the Company, and pensioner members of the Scheme will be fully involved in the process to nominate and select one-third of the Trustees of the Scheme.
 

2. The Scheme

The Scheme currently has five Trustees: one independent Trustee chair, two Company-nominated and two member-nominated Trustees (known as MNTs).
 
It should be noted that whilst the number of Company-selected Trustees may change in the future at least one-third of the Trustees will always be member-nominated and (if necessary) further MNT nominations would be sought to keep this ratio of MNTs to employer-selected Trustees intact.
 

3. A Trustee’s role

The Trustees are responsible for ensuring that the Scheme is administered in accordance with the trust deed and rules and legislation. If regulations are not adhered to, financial penalties or prosecution could result, and these could be imposed on the Trustees themselves.
 
An MNT has exactly the same functions and responsibilities as the other Trustees. These have been summarised by The Pensions Regulator as follows:

• to act in accordance with the trust deed and rules of the Scheme, within the framework of the law;
• to act prudently, conscientiously and honestly and with utmost good faith;
• to act in the best interests of all classes of beneficiary;
• to take advice on technical matters and any other matters which are not understood;
• to invest the funds of the Scheme.

 
Further information is available from The Pension Regulator’s website at www.thepensionsregulator.gov.uk The Trustees meet regularly during the year but may also be contacted to consider matters outside of the Trustee meetings.
 
All Trustees will be required to sign a Confidentiality Agreement, which confirms that the information they have access to regarding the employers participating in the Scheme and the members of the Scheme will be kept confidential and will only be used in connection with the running of the Scheme.
 
New Trustees will be required to gain the appropriate skills and knowledge to perform their duties as a Trustee within 6 months of appointment. Further details will be provided on appointment, although potential nominees should be aware that a new Trustee is accountable in law immediately on appointment. The website of the Pensions Regulator contains a free e-learning programme for Trustees which potential nominees may find useful and which the Regulator believes is an essential programme of study for new Trustees.
 

4. Eligibility requirements

Deferred members who are currently employed by the Company and pensioner members of the Scheme may become MNTs.
 
Legislation provides that the following may not become, or may not continue to act as, a Trustee:
 

1. a person convicted of any offence involving dishonesty or deception;
2. a person subject to bankruptcy or sequestration, in both cases undischarged;
3. a person who has made an arrangement with creditors but has not been discharged;
4. a person disqualified as a company director;
5. a person suspended, prohibited, or disqualified as a Trustee by The Pensions Regulator; and
6. a minor.

 
A person who purports to act as a Trustee whilst disqualified will be guilty of a criminal offence.
 

5. Period of office

The Trustees have agreed that the standard term of office for MNTs should be five years, and that the terms should continue to be staggered to provide continuity on the Trustee Board. To achieve this, for the new MNT position there will be a five-year term.
 
Trustees should serve these terms, unless he or she retires from office, dies or is removed in exceptional circumstances by the Trustees.
 
At the end of their term of office he or she may stand for re-selection.
 
If an MNT was a member of the Scheme on appointment as a Trustee, he or she will cease to be an MNT if they cease to be a member (for example, on transfer of benefits to another pension arrangement). If an MNT ceases to be a Trustee before the end of their period of office, a replacement will be sought using the nomination and selection process. An MNT selected under this process will serve the remainder of the original period of office.
 

6. Nomination of MNTs

Members may nominate an MNT by using the MNT Form attached to this document. It is permitted that a member nominates themselves. The nomination must be seconded by another Scheme member. A person seconding a nomination can evidence this by a MNT Form signed in counterpart, electronic signature of a scan of the MNT Form or written confirmation (e.g. email) sent to Jungheinrich.Pensions@isio.com.
 

7 Selection of MNTs

Following the nomination process, if there are more nominations than vacancies, the candidates will go through a selection procedure where they will be interviewed by a panel chosen by the Chair of Trustees, Phil Harwood. The results will be announced as soon as practicable after this.
 
If the number of nominations is less than or equal to the number of vacancies, the nominees are deemed to be selected. This selection process will run again half way through the term of office of the vacant position, or earlier if the Trustees decide, if the member nominated Trustee seats are still vacant after this process.
 
If an MNT ceases to be employed by the Company or is no longer a pensioner member of the Scheme during their term of office, they will also cease to be an MNT, and a replacement will be sought by the same nomination and selection process. If an MNT resigns for any other reason, a replacement will also similarly be sought.
 
 
These rules on the MNT arrangements for the Jungheinrich UK Limited Retirement Benefits Scheme were adopted by the Trustees of the Scheme in July 2024.
 

Introduction

The government and the Pensions Regulator actively encourage pension scheme members to serve as Trustees. The current Trustees of the Scheme support the concept of member-nominated Trustees (MNTs) as they bring additional skills and diversity to the Trustee board while improving the level of transparency and member involvement.
 
Being an MNT is a responsible and demanding job, requiring particular skills and carrying significant personal responsibilities. All of the Trustees are responsible for managing all aspects of the Scheme in much the same way as a board of directors is responsible for managing a company. Trustees can delegate some functions (usually in the area of Scheme administration) but cannot delegate their responsibility.
 
Pension schemes are heavily regulated and Trustees must ensure that the scheme they oversee is compliant at all times. Trustees are responsible for scheme administration, record keeping, benefit calculations and payments. They must ensure the scheme rules are applied and must safeguard members’ interests in the scheme. Where scheme rules give the Trustees responsibility to decide who receives benefits (and to what extent) the powers must be used consistently and fairly. They must commission valuations and negotiate contribution rates with employers. They must also determine what investment policy is appropriate for the scheme and appoint appropriate investment managers.
 
Professionals are appointed to advise on legal, investment and actuarial issues, but only the Trustees have the power to make decisions.
 
All Trustees have a duty to manage schemes in the best interests of all members; MNTs are not permitted to represent or favour any particular group or category of the membership.
 

Training requirements

The Pensions Regulator has published a Code of Practice – “Trustee Knowledge and Understanding” (TKU) which sets out the standards expected. This can be viewed on the website www.thepensionsregulator.gov.uk/en/document-library/codes-of-practice and is Code number 7.
 
For all but the most experienced Trustee, meeting the standards expected will involve an initial period of formal training and subsequent updates. For new Trustees, with little or no experience, the training process will be fairly demanding, involving a combination of several days’ initial formal training and an ongoing programme of informal study.
 
The Regulator has also established a Trustee e-learning programme which can be accessed at www.trusteetoolkit.com. Trustees are encouraged to complete this course and obtain the resulting certification of competence. Anyone wishing to investigate the nature of the learning programme should access the first module which provides a good indication of the level of difficulty.
 
New Trustees have 6 months in which to reach the standard outlined by the Regulator, although the Regulator makes it clear that learning should be started immediately on appointment, if not before.
 
There is no formal examination at the end of the training period, but individual Trustees are responsible for ensuring that they reach the required level of knowledge and understanding.
 

Investment policy

Trustees are responsible for selecting the scheme’s investment policy with the help of a professional adviser. This is arguably the Trustees’ most important function. It involves an analysis of the scheme’s liabilities and what investment policy, in conjunction with the employers’ contributions, is most likely to ensure that the assets are sufficient to meet the liabilities as they fall due.
 
The concepts and required level of understanding are likely to be fairly challenging for anyone not already familiar with institutional finance or investment.
 

Logistics

Trustees must communicate with each other, their advisers and any employers on a continuous basis. Statutory time limits apply to many scheme processes. If a Trustee is operating from home, the necessary communication facilities must exist. In addition to a telephone, a Trustee will need email and basic computing/printing facilities, e.g. Microsoft Office software, and internet access.
 
It will be necessary to attend Trustee meetings (taking place via the online platform Microsoft Teams, and as the UK’s recovery from the Covid-19 pandemic progresses, at Jungheinrich UK Limited’s offices in Milton Keynes). Formal Trustee meetings take place three times a year, and usually last around half a day. In addition, from time to time it may be necessary to hold supplementary meetings. Many Trustee actions and decisions are time sensitive so the Trustees must be willing to make themselves available when needed.
 

Personal responsibility

Trustees make decisions and take actions which have the potential to affect members’ lives. Trustees must do these things within the framework of the scheme’s trust deed and rules and prevailing legislation. If they do this reasonably and in good faith they are legally protected from the consequences by a wide- ranging indemnity.
 
However, if the Trustees are negligent or dishonest the indemnity may not apply and the Trustees may be individually or collectively responsible for the consequences of those actions or omissions even if another Trustee has committed the error. This may include the imposition of fines or compensation orders.