Workplace pension provider Penfold has launched its Better Pension Badges, a new badge programme that recognises employers whose pension offering goes beyond the statutory minimum. Under automatic enrolment, the minimum total contribution is 8 per cent of qualifying earnings, of which employers must pay at least 3 per cent.
Employers will be awarded Bronze, Silver, Gold or Platinum status depending on factors such as: how much they contribute, which earnings those contributions are based on, whether they offer salary sacrifice and how much pension education their employees receive. Each badge can be displayed on an employer’s website and social channels.
The launch follows Penfold’s ‘The UK Pension Gap’ report, which found that 65 per cent of employers now see pensions as a core employee benefit or competitive advantage, yet 43 per cent of employees are not confident their pension will fund a comfortable retirement. Taken together, the findings point to a gap between how employers view their pension provision and how confident employees feel about their retirement savings. The badges give employers a clear way to communicate what their pension offering includes to existing employees and prospective hires.
Chris Eastwood, CEO and co-founder at Penfold said: “Employers can go beyond minimum pension requirements, but their employees do not always have a simple way to see that. Higher employer contributions, calculating contributions on a broader share of earnings and providing regular pension education are all tangible ways employers can strengthen their pension offering. The Better Pension Employer Badges make that commitment easier to see.”
Bronze status recognises employers who pay pension contributions from the first pound of an employee’s basic salary and offer salary sacrifice. Silver employers also pay employer contributions above 3 per cent and offer yearly pension education to every employee. Gold builds on this with employer contributions above 5 per cent, with every pound of eligible earnings, including relevant variable pay, counting towards employees’ pensions.
Platinum, the highest tier, is for employers contributing 7 per cent or more who offer pension education twice a year. Platinum employers also review their scheme every year and keep employees informed about their pension throughout.
“A workplace pension is one of the most valuable benefits an employer can offer. We want to recognise the employers already going further and give others a clear set of criteria to work towards. Moving up a tier shows that an employer has made a measurable improvement to the pension support it provides.” concluded Eastwood.
