Leading pension provider Legal & General has achieved the mark of excellence for its staff pension.
The Pension Quality Mark (PQM) has been awarded to the prominent pension provider for its Defined Contribution (DC) pension scheme.
PQM is the standard given to those employers who provide good-quality DC pensions to their staff. It distinguishes pension schemes that are well run by employers, whose contribution rates are good, and which are clearly communicated to members of staff.
Alexandra Kitching, Pension Quality Mark (PQM) Manager, said:
"We are very pleased that Legal & General has achieved this important benchmark and joined other major financial services companies that have PQM, such as Nationwide and HSBC Bank.
"Legal & General is one of the most prominent pension providers and it is great news that its own staff scheme has qualified for the PQM."
PQM recognises DC schemes whose total contributions are at least 10 per cent of an employee's salary, with a minimum employer contribution of 6 per cent including matching contributions.
Legal & General is also showing its commitment to good standards for DC by becoming a Friend of PQM. A Friend of PQM actively engages in promoting the mark and good standards of DC among pension schemes and sponsoring employers.
Rosemary Lemon, Group Head of Reward & Executive Remuneration for Legal & General, said:
"As one of the leading workplace saving providers in the UK, the provision of good quality pensions for our customers is a prime focus. But it is equally as important that we uphold the highest standards for our own staff as well.
"We are, therefore, naturally delighted to have achieved the PQM for our own employee schemes, which confirms that the current pension arrangements for Legal & General employees are among the best in the UK."
The Pension Quality Mark (PQM) was launched by the National Association of Pension Funds (NAPF) in September 2009. More than 140 schemes now qualify and approximately 250,000 active scheme members are now actively saving in schemes that carry the mark. There are two standards, PQM and PQM PLUS.
PQM is the basic standard recognising good quality DC pensions. PQM PLUS is the superior standard. It recognises DC pension schemes. Under PQM PLUS, the scheme's total contributions must equal at least 15 per cent of an employee's salary, with a minimum employer contribution of 10 per cent.
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