The Pensions Act 2004 requires that where a pension scheme is set up under a trust, the trustees must normally ensure that at least one-third of their number are nominated by the scheme's members. These member-nominated trustees are frequently employees who are members of the scheme.
Under the Employment Rights Act 1996, employees who serve as pension fund trustees of their employer's pension scheme have certain rights. They are entitled to paid time off work to perform their duties, and to take part in training that is relevant to those duties. The amount of time off that the employee is allowed, the purposes for which it is allowed, when it is allowed and any conditions that apply all depend on what is reasonable in all the circumstances. The circumstances of the employer's business and the effect the employee's absence will have on the running of the business can be taken into account. If the employee's pay does not vary with the amount of work he or she does, then he or she must be paid as normal during the time off. If the employee's pay does vary with the amount of work done, he or she must be paid at the rate of his or her average hourly earnings.
Employee trustees also have the right not to be put at any disadvantage because they have performed, or proposed to perform, their duties. It is automatically unfair to dismiss an employee, or to select an employee for redundancy, because he or she has performed, or proposed to perform, his or her duties as a trustee. This protection applies to all employee trustees, regardless of their length of service.