Member Nominated Trustee Director (MNTD) exercise 2024

The Cadent Gas Pension Scheme (‘CGPS’) is governed by eight Trustees. Four of the Trustees are nominated by Cadent. The other four Trustees are Member Nominated Trustees (MNTs).

The vacancy in 2024 is for two of the four MNT roles on the Trustee Board.

The structure of the Board of Trustees

The Cadent Gas Pension Scheme assets are held completely separately from the Company, Cadent Gas Limited (‘Cadent’), and while Cadent is led by its board of directors, the Scheme has its own separate Trustee board. The Trustee board governs the Scheme, ensuring it complies with legislation, and manages risks, for example the risk that the value of Scheme assets can fluctuate. The overall responsibility of the Trustee board is to ensure the payment of Scheme benefits, correctly, and on time. 

As well as the Trustee board, there are three committees: 

• an Integrated Risk Management Committee, which considers covenant (the strength of Cadent supporting the Scheme), investments and funding; 
• a Benefits and Communications Committee; 
• a Governance Committee. 

Most Trustees are on two committees.

The role of an MNT

The role of Trustees, whether it is member-nominated or Cadent-appointed, is identical in nature. 

Trustees play a crucial role in ensuring the efficient management and administration of the Scheme for its 23,000 members. This involves safeguarding the Scheme’s investments and delivering an excellent experience for members, ensuring accurate and timely payment of member pensions and benefits. 

This means, as an MNT, you'll face new and complex challenges, for example changes to investment conditions and strategy, the funding of the Scheme, the changing nature of communications, and the introduction of new legislation.

You'll work alongside other Trustees and specialist advisers to ensure the smooth and efficient running of the Scheme. It’s a wide-ranging and interesting role with a lot of responsibility. 

The key responsibilities of Trustees are as follows. 

• Ensuring the Scheme is operated in accordance with the Scheme’s Trust Deed & Rules and within the law. 
• Considering and deliberating expert technical and legal advice to decide strategy, Scheme investment, performance monitoring and reporting to members. 
• Monitoring, reviewing and assessing the Scheme’s administrators, professional advisers, investment managers and other suppliers. 
• Working collaboratively with the other Trustees and Cadent as the Scheme’s sponsor. 
• Keeping Trustee matters and business strictly private and confidential at all times. 
• Acting reasonably, conscientiously and honestly, with the utmost good faith.

The Pensions Regulator (TPR)

The pensions industry is changing constantly. There has in March 2023 been new guidance from The Pensions Regulator (TPR) on Equality, Diversity and Inclusion practices when appointing MNTs. In addition, in March 2024 TPR’s new General Code of Practice has taken effect, encompassing a legal requirement to have an Effective System of Governance in place. The CGPS Trustees will need to have regard to these requirements throughout the 2024 MNT appointment exercise for the Scheme. Further information can be found at: 

• https://www.thepensionsregulator.gov.uk/en/document-library/codes-of-practice 
• https://www.thepensionsregulator.gov.uk/en/document-library/scheme-management-detailed-guidance/governing-body-detailed-guidance/equality-diversity-and-inclusion

The Skills Required

Over the last two years the Trustee board has undertaken Trustee Effectiveness exercises to look at the structure of the Board, and in addition the Trustee board has set out its long-term journey plan; the outcome of these exercises has identified essential requirements that will need to be met by any MNT applicant. 

Therefore, the application process for 2024 will include the completion of a questionnaire. The questionnaire will ask applicants to provide information about skills that they hold or are willing to develop as a Trustee. This is a practice that is now encouraged by The Pensions Regulator, as detailed below, to ensure that the overall skills profile of the Trustee Board is as effective as possible. 

Completed questionnaires will be reviewed by a Panel. The Panel will undertake the review ‘blind’ (i.e. the Panel members will not receive any personal information). Each Panel member will independently assess the answers given in a questionnaire against an eligibility matrix and the collated results will be used to determine an applicant’s eligibility to stand as an MNT.

The Process

The diagram below gives an indication of how the process will be running and the timings.

Provision of information 

This exercise will largely be conducted online. However, if an applicant wishes at any time for information on this exercise to be printed and posted, this will be arranged – please just email us to request this: CGPSTrustees@cadentgas.com 

For further information and details of the process and how to apply, please read the Frequently Asked Questions, here.

Life of a Trustee 

This short video from our Trustees provides an insight of what it is like being a Member Nominated Trustee and what the responsibilities are. 

A manuscript of the video can be accessed here.