The Pension Quality Standard (PQS)

As Defined Contribution (DC) pension provision becomes increasingly widespread there is a growing need for individuals to develop a better understanding of DC pensions, especially of the DC pension offered by their employer.

Too often, employees have only a vague idea of how much they need to save and the amount their employer is willing to contribute.  Many employers say that their employees have a poor understanding of the pension offered and tend to value pension contributions less than take home pay.  This is despite the fact that many employers dedicate significant time and resources to communicating the benefits of the DC pension they offer.

The IAPF promotes improved communications. If members do not understand or act appropriately at an early stage in their working lives this may result in unfulfilled pension expectations and extended working lives. As a result, the IAPF believes that appropriate education and information must be provided to ensure the reasonableness of member expectations.

While it is recognised that the responsibility for providing this is shared by the State, employers, trustees, pension professionals, representatives and individual members themselves, the IAPF wants to recognise those pension schemes that attain a certain standard which reflects qualitative contribution, communication and governance strategies for DC Schemes.

PQS with Merit:
Schemes with contribution rates of greater than 15%  (of which the employer contributes at least 8%) may be awarded a PQS with merit, assuming that appropriate governance, investment and communications strategies are also in place.

Application Fee: €100