Criteria Pension Funding Mark
Employers adopting the Pension Funding Mark are agreeing to a single key commitment:
1. Paying or offering to match pension contributions of up to 5% (gross) on all qualifying salary to qualifying employees.
Notes and details
1. Employers use the same definitions and options as auto-enrolment in determining which employees qualify and what defines pensionable salary.
2. Employers are required to match employees’ gross contributions (defined as the employees’ net contribution and the tax relief).
3. The 5% limit is based on all pensionable salary from the first pound (not the reduced bracket of band-earnings chosen for Auto-enrolment).
4. Pension funding payments are required after three months of service in line with auto enrolment.
5. Employer pension contributions can be made up of flat payments and/or matching.
6. Matching arrangements must be pound-for-pound or better and employees must be made aware that they may have to contribute personally to receive this benefit.
7. Senior staff who request bespoke pension arrangements may be omitted from the calculation.
8. Where there are reasonable circumstances for a firm not meeting its pension funding commitment in a given year this may be accommodated without changing the Mark.
9. If an employer is uncertain whether their pension arrangements meet the 5% minimum threshold they can contact FairLife Limited for confirmation.
To download a pdf summary of the Pension Funding Mark click here.
[A licence for the Pension Funding Mark will be available shortly by clicking here]