Pension Quality Mark (PQM) has launched a new benchmark to help employers identify good quality multi-employer pension schemes or master trusts.

The PQM READY benchmark has been designed to recognise those multi-employer schemes and master trusts that have demonstrated high standards of governance and communications. Criteria that have to be met include providing proof that independent trustees are in a majority or have a casting vote; and that member communications are clear, regular and engaging.

Those schemes that meet the PQM READY standards are only one step away from the PQM standard. To get that accreditation, the scheme also needs to meet the contributions standard set by PQM as the governance and communications standards have already been met in order to qualify for PQM READY. Total contributions need to be at least 10 per cent, with at least 6 per cent from the employer.

PQM chairman Chris Hitchen said: “Companies have a responsibility to their staff for picking a good pension scheme under the auto-enrolment reforms. But not all of them understand pensions and they need help. This is why we have launched PQM READY.

“PQM READY is a new way to help employers choose a good quality multi-employer scheme by highlighting those that are well governed, and that have good member communications and low pension charges."

The Pensions Regulator’s Bill Galvin Chief Executive added: “We welcome PQM READY. Our research tells us that many employers who have never engaged with pensions are concerned about choosing a scheme, and PQM READY can help them with this decision. We're currently in discussions with the industry about how such quality marks could be used to exhibit compliance with our six DC principles.”

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