100,000 workers have schemes that hit the Pension Quality Mark
25 March 2010
Just six months after its launch, over 100,000 people are now saving in pension schemes that have the Pension Quality Mark. They now have a simple way to see that the pension scheme they are offered at work is a good one.
Electrical specialist Comet is the latest scheme to receive the award, bringing to 37 the number of schemes that have hit the Pension Quality Mark. Comet’s scheme has 3,000 members all of whom qualify for a company contribution of at least 7.5%. Comet joins a host of household names who have received the PQM to date, with more waiting in the wings.
NAPF Chief Executive Joanne Segars said:
“The Pension Quality Mark continues to go from strength to strength. It is really exciting to see so many schemes qualified and so many people saving in schemes covered by the Mark so soon after its launch.
“The schemes that have received the award can use it to demonstrate the value of their pension to staff. Employers can use it to attract and retain good people and it can help improve employee contributions in pensions. There really are benefits for everyone.
“I encourage employers with DC schemes to go online and apply for the Pension Quality Mark today.”
Julie Hendey, Head of Human Resources at Comet said:
“We want to help our employees to prepare for the future so they can maximise their retirement opportunities. Having the PQM demonstrates that we provide a good quality scheme and encourage our employees to think about saving for their retirement.”
Nearly 7 million people in the UK fail to join a pension scheme at work – despite missing out on valuable employer contributions. This is often through a lack of understanding about pensions. The Pension Quality Mark is an important way to encourage people to start saving for retirement, and it gives people a clear signal that they can have confidence in their scheme.
Notes to Editors
About the Pension Quality Mark
The Pension Quality Mark was launched on 21st September 2009.
The Pension Quality Mark and Pension Quality Mark PLUS is available to any employer whose DC pension scheme (whether occupational DC schemes, group personal pensions, group stakeholder pensions and, from 2012, Personal Accounts) meets three basic criteria on contribution rates, governance and communications:
Contributions: contributions of 10% must be available, with at least 6% (double the 2012 statutory minimum) paid by the employer. If contributions are 15%, with at least 10% from the employer, then schemes can apply for a Pension Quality Mark PLUS. The Standard takes account of different contribution formulas, eg fixed, matching, age and service-related.
Governance: governance arrangements must be in place to ensure that the scheme is operating in the best interests of members. This can take a variety of forms including trust boards, management committees and an annual scheme review.
Communications: the scheme must provide clear and simple information to members when they join the scheme and thereafter.
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