The Pension Quality Mark (PQM) has asked stakeholders to respond to its consultation paper on developing a retirement quality mark.

The consultation document outlines how the PQM board wants to consider how a quality mark for retirement products could be developed to meet the needs of savers and trustees.

PQM is a standard that recognises DC pension schemes that launched in 2009 to raise confidence in workplace pensions, as well as helping employers demonstrate that their scheme is high quality.

Its initial proposal for the retirement quality mark is that it would assess retirement products provided by schemes and providers in terms of their governance and communications.

Adrian Boulding, chair of the PQM board, said the quality mark would make a difference to scheme members by making sure retirement products operate in the best interests of customers.

"We believe ensuring strong governance of retirement products would ensure they operate in customers' best interests – not just at the point of sale, but on an ongoing basis."

Boulding added that the quality mark would ensure there are high quality, clear and actionable member alerts; default investment arrangements for people who are reluctant to make decisions, and provide value for money for savers.

"The retirement quality mark can make a real difference by making drawdown plans much more useable for people who may not have financial expertise, but who will be managing their own retirement income in future."

The consultation paper invites views on a range of issues and the consultation period will be open for nine weeks, closing on Friday 15th January 2016.

Final proposals will be based on analysis of the responses and further discussions with stakeholders.

PQM says it aims be open to accept applications for a retirement quality mark towards the middle of 2016.

"A quality mark could also help trustees to help their scheme members make informed decisions, enabling effective signposting of good value products; and help the development of the market for retirement products by setting out what 'good' looks like," said Boulding.

First published 19.11.2015

Lindsay.sharman@wilmingtonplc.com