New benchmark for ‘quality’ pensions - Pensions - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

New benchmark for ‘quality’ pensions

New benchmark for ‘quality’ pensions

Category: Pensions

Updated: 22/09/2009
First Published: 22/09/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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:

  • Contributions of at least 10% of salary, with a minimum employer contribution of 6 %
  • Evidence that the scheme is being well run and operated in the best interests of members, with an annual management charge not exceeding 1%
  • Clear, engaging and easy to understand communication to members.

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Setting goals could boost your pension pot by £30K

Setting goals can be the key to success in many areas of life, helping motivate you to achieve anything from career progression to building up that house deposit - and if you have goals set for retirement, you could boost your pension by £30,000.

Pretend to be a time traveller day: Are you ready?

Today marks international ‘pretend to be a time traveller day’, a perfect occasion to look at what our lives might look like in 50 years’ time. Are you prepared for 2066?

Two out of five pensioners worry about money

Nearly two out of five pensioners fear that they’ll run out of money in retirement because they do not have enough guaranteed income, according to a new study by MetLife.