PQM Standards 2019
Welcome to the new PQM Standards. These are the first revised Standards since PQM launched in 2009.
So much has changed in pensions since then, and some of the original Standards are now regulatory requirements or industry practice. It seemed time to have a thorough review, and re-evaluate what PQM is aiming to achieve.
PQM is a PLSA initiative, which contributes to our mission to help everyone achieve a better income in retirement. PQM recognises high quality pension schemes which meet minimum contribution levels (12% of pensionable pay), good governance, and which encourage employees to save for their future.
In 2017 we consulted on what should be included in the new Standards. We invited responses from PQM holders and other stakeholders, and had in-depth discussions with pension professionals, PQM assessors, and the PQM Board. We believe we have developed a set of Standards that are fit for 2019 and beyond.
The core principles of the new PQM Standards are that a pension scheme should have: a commitment from the sponsoring employer, minimum contribution levels, an effective board, a quality default investment strategy, a value for money assessment, an understanding of its members with an inclusive engagement strategy, and support members at retirement. We have described what we consider would be good practice in the above categories, and how the scheme might demonstrate that it meets these Standards.
We hope you will agree that the new Standards are more appropriate to the current pensions landscape. We have also aimed to make them easy to use. We recognise that it is quite a different style and approach, and we would welcome the opportunity to discuss any comments you might have.
From June 2019 we will use these new Standards for any new PQM applications. For existing PQM holders the new standards will take effect from 2020, although you may choose to use them sooner for renewals.
New PQM Standards
The existing Standards can be used by new applicants until June 2019, and by renewing applicants until 2020.
Summary of differences between the two sets of Standards.
For further information on applying for PQM or renewing please contact us
24/01/2019 - PQM Standards 2019 read more
18/10/2018 - PQM Distinction award 2018 read more
T: 020 7601 1736
The PQM is a significant step forward in meeting the challenge of rebuilding confidence in workplace pensions.
Joy Moore - Head of Pensions, RWE Npower plc