A scheme designed to help rebuild and promote public confidence in workplace pensions has been unveiled by the National Association of Pension Funds (NAPF).
The Pension Quality Mark (PQM) will certify that a firm's defined contribution pension scheme has met key qualifying criteria on contribution rates, governance and communications, with the aim of attracting more employees into such schemes.
The criteria that a firm's pension scheme will need to meet in order to qualify for the PQM include:
According to recent research by NAPF, more than two thirds of employees looking for a new job said that a Pensions Quality Mark would make them look more favourably on a potential employer. In addition, over half said that an independent quality mark awarded to their employer's scheme would make it more likely that they would join.
Seven companies are to receive the award initially: Accenture, BG Group, IBM, Kellogg's, Marks & Spencer, Standard Life and The Royal College of Physicians.
"By providing a benchmark, the Pension Quality Mark can help people judge the quality of the pension scheme offered and companies will be able easily to promote that aspect of their employment package," said Doug Taylor, personal finance campaigns manager at Which?.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.