The Pension Quality Mark (PQM) will be launched in early 2009 and will be available to all types of workplace pension that meet three core tests.
To qualify schemes must offer a minimum 10 per cent of earnings, with a minimum 6 per cent contribution coming from employers. Schemes must also have a governance arrangement of some sort. This could be a trustee board, management committee or annual review arrangement.
Schemes will also need to provide clear and simple information to members when they join the scheme and thereafter to qualify.
PQM will be made available to occupational DC schemes, group personal pensions and group stakeholders. The NAPF says the average employer contribution of its DC scheme members is 7 per cent, so the majority of its members will qualify.
Employers will be able to apply for the PQM online through a self-certification process.
Chris Hitchen, chairman of the NAPF says: “The Pension Quality Mark is an important new development which will benefit both employers and employees. It is a simple benchmark that employers can use to demonstrate the value of their pension both to current and to potential staff. It will also help employees to understand more about their employer’s pension arrangements.”