The Employer Pension Pledge

The Employer Pension Pledge (“the Pledge”) is a commitment from employers which demonstrates a voluntary commitment to select (and review) their DC provider using 'expected retirement outcomes net of fees' metrics rather than 'cost minimisation' metrics.

The Pledge sets out clear principles to:

1. ensure a focus on value for money before, during and after a pension provider is reviewed or selected by an employer, and
2. drive transparency around the level of investment in private assets from pension providers.

It also commits employers to facilitating a greater level of training to ensure adequate knowledge and understanding of the potential benefits that can arise from an allocation to private markets as part of a diversified portfolio. 

Over twenty of the UK’s largest employers, representing over a million pension pots of workers across the UK, have committed to maximising employee pension value by prioritising outcomes for savers over minimising cost when reviewing or selecting pension providers.

This Pledge is designed to align with, and support the success of, other related industry initiatives, such as the Value for Money framework (currently undergoing a joint review by the Financial Conduct Authority and the Pensions Regulator) and the Mansion House Accord and Compact.