New pension quality mark unveiled
A new scheme aimed at improving employees’ understanding of workplace pensions has been launched by the National Association of Pension Funds (NAPF).
The Pension Quality Mark will be awarded to firms that meet key criteria on contribution rates, governance and communication.
It is hoped the initiative will enable companies to demonstrate the value of their defined contribution pension scheme and thus encourage more employees to join. Some experts have claimed the move could also help rebuild the public’s confidence in workplace pensions.
To qualify, the pension scheme must:
· Provide contributions of at least 10% (with a minimum of 6% paid by the employer)
· Have governance arrangements in place to ensure it operates in the best interests of its members
· Ensure communication is clear and simple.
Employers will have to pay a one-off assessment fee of £250 and a £250 annual licence fee. A higher charge will apply to firms that operate schemes with more than 500 members.
Commenting on
the launch, Joanne Segars, NAPF chief executive,
said: ‘The Pension Quality Mark is an exciting new initiative which will
benefit both employers and employees. It shows these employers