Marks & Spencer plc and Kellogg's are just two of the seven companies to be awarded the new Pension Quality Mark following its launch by the National Association of Pension Funds (NAPF).

The Pension Quality Mark, awarded by Angela Eagle MP, Minister of State for Pensions and the Ageing Society, is designed to help employers demonstrate the value of the defined contribution (DC) pension scheme. The Mark certifies that the companies' DC scheme meets the key qualifying criteria set out by the NAPF in terms of contribution rates, governance and communications.

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. I urge more employers to apply so that they can tell the story of their good quality schemes with confidence."

The launch of the quality mark test has been welcomed by the industry, with Jay Doraisamy, pensions partner at international law firm Eversheds, explaining: "There is now an increasing focus on the management and governance of defined contribution pension schemes, particularly as a result of the growing trend of employers looking to close defined benefit schemes to future benefit accrual, and the consequential need for sustainable pension provision. Indeed, the Pensions Regulator has recently chosen to issue a statement on DC governance and will be keeping the position under review. The introduction of the 'pensions quality mark' by the NAPF is therefore timely and to be welcomed.

"Having a benchmark to assess the quality of the DC scheme they are in, or which they could join, should greatly assist employees in understanding how good their employer's DC scheme is and assist employers including those who are considering replacement DC benefits."

Curtis Bank's managing director, Rupert Curtis, added: "The public are turned off pensions in a big way, partly because they don't understand them and partly because they don't trust them, so any scheme focused on rebuilding confidence in the pensions industry has got to be good news."

Accenture, BG Group, IBM, Standard Life and The Royal College of Physicians are also included in the first seven businesses to be recognised for this award.

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