Marks & Spencer and Kellogg’s are among the first seven companies to be awarded the new Pension Quality Mark, launched today by the National Association of Pension Funds (NAPF).
The new mark – set up by the employer-led NAPF – aims to help firms demonstrate the value of their defined contribution (DC) pension scheme and making workplace pensions more understandable and attractive.
The award certifies that an organisation’s pension scheme has met key qualifying criteria on contribution rates, governance and communications.
NAPF research conducted for the launch found that more than two-thirds (67%) of employees looking for a new job said that a Pension Quality Mark would make them look more favourably upon a potential employer.
Employers will have to pay a one-off assessment fee of £500 and an annual fee of £500 for schemes with more than 500 members.
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’ commitment to encouraging their staff to save for retirement, which is becoming ever-more vital.
“The Pension Quality Mark will also help to rebuild and promote public confidence in workplace pensions,” she added. “I urge more employers to apply so that they can tell the story of their good quality schemes with confidence.”
The other companies in the first wave of employers to gain the Pension Quality Mark are Accenture, BG Group, IBM, Standard Life and The Royal College of Physicians.