Legal & General has become the first insurer to achieve the Pension Quality Mark (PQM) READY accreditation for its mastertrust pension scheme.
PQM READY was set up by Pension Quality Mark, the independent standard that recognises good quality defined contribution pensions. The benchmark aims to help employers spot a good multi-employer pension scheme or mastertrust.
To get PQM READY accreditation schemes need to show, amongst other things, proof that independent trustees are in a majority or have a casting vote, and that member communications are clear, regular and engaging.
Alexandra Kitching, PQM Manager, said:
“I congratulate the Legal & General Worksave Mastertrust for achieving PQM READY. It is a well-governed pension scheme that supports better member outcomes through a combination of low charges, jargon free communications and independent governance. PQM READY is formal recognition of this.
“Employers who choose a mastertrust with PQM READY, such as the one being offered by L&G can be confident it provides a firm base for pensions saving.”
Paul McBride, Director of Legal & General Trustees Limited, said:
“We’re proud to have been awarded this important accreditation for our WorkSave Mastertrust. Legal & General is a leading pension provider and a Friend of Pension Quality Mark. We’re committed to providing and promoting high quality workplace pension schemes. The PQM READY accreditation demonstrates not only the quality of the governance, and engaging member communications, but also provides assurance to our current and future employers that the scheme they choose for their employees will work in their best interest.”
Ms Kitching added:
“Participating employers can go one step further and achieve both the PQM and PQM PLUS accreditations, simply by making sufficient contributions – the trustee addresses all other aspects on their behalf.”
Attainment of PQM READY by the Legal & General WorkSave Mastertrust will allow employers to qualify for PQM via the PQM READY route. Employers who participate in a pension scheme such as the WorkSave Mastertrust scheme and who pay the required PQM level of contributions can apply to get the PQM for their own company arrangement as the governance and communications standards are already satisfied. Total contributions must be at least 10%, with at least 6% from the employer.
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
2. Multi-employer pension schemes and master trusts are types of pensions that are governed by a single trustee board but can be used by many different employers. Multi-employer pension schemes can find more information on PQM READY at: http://www.pensionqualitymark.org.uk/pqmready.php
3. The PQM initiative was launched by the National Association of Pension Funds (NAPF) in September 2009: The mark has been given to 181 pension schemes, and covers a third of a million active scheme members. There are two standards, PQM and PQM PLUS:
Under PQM, the scheme’s total contributions must equal at least 10% of an employee’s pensionable salary, with a minimum employer contribution of 6%.
Under PQM PLUS, the scheme’s total contributions must equal at least 15%, with a minimum employer contribution of 10%.
4. The Legal & General Group (www.legalandgeneral.com/workplacebenefits), established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2012, we were responsible for investing £413 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans. Legal & General is one of the biggest providers of index-tracking investments in the UK, managing £243 billion as at 31 December 2012.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Aimee Savage Richards, Press Officer (interim), 020 7601 1718 or 07825 171 446, [email protected]
Legal & General: Mike Connolly, PR Manager, 01737 375365, [email protected]