Pension Quality Mark launched

The Pension Quality Mark has been launched in a bid to help potential employees assess the quality of a work-place scheme on offer, as well as making them more attractive and understandable to employees.

It also hoped the award will boost the take-up of pension savings - particularly among younger employees.

The scheme is being run by the National Association of Pension Funds (NAPF), which represents 1,200 UK funds, and will be awarded to companies whose defined contribution schemes meet certain criteria.

To qualify for the Pensions Quality Mark, the scheme must have contributions of at least 10% of a worker’s pay, with at least 6% contributed by the employer.

At the launch, more than half a dozen companies were awarded the Pension Quality Mark - Accenture, BG Group, IBM, Kellogg’s, Marks & Spencer, Standard Life and The Royal College of Physicians.

NAPF chief executive, Joanne Segars, comments: “The Pension Quality Mark is an exciting new initiative which will benefit both employers and employees.

“It shows these employers’ commitment to encouraging their staff to save for retirement, which is becoming ever more vital,” adds Ms Segars.

The news of the award comes as several companies have recently closed final-salary schemes.

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