The National Pension Trust is the first mastertrust to have been awarded the Pension Quality Mark in recognition of its high levels of governance, communications and member support.
What is PQM?
The Pension Quality Mark (PQM) standard, launched by the National Association of Pension Funds, (NAPF) to recognise high quality DC schemes, has received support from the pensions industry, employers, employee bodies, consumer organisations and the Pensions Regulator.
To be awarded the PQM, employers must provide their staff with access to a high quality pension arrangement that meets certain governance requirements:
- Strong governance structure;
- Regular review of investment options and provide appropriate guidance for members;
- Average member charges should be less than an annual management charge of 1%.
In addition, communications should be clear, engaging, easily understood and issued at three membership stages: At induction, membership and approaching retirement.
Why is it important?
NAPF research shows that nearly two thirds of employees would view their employer in a better light if their pension scheme had an independent quality mark.
What do you have to do to get the PQM?
As the National Pension Trust exceeds these requirements, all employers have to do is decide upon their contributions in order to apply for either the Pension Quality Mark or Pension Quality Mark Plus. The Independent Professional Trustee takes care of the rest.