The Employer Pension Pledge

The Employer Pension Pledge is a framework for employers to sign 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 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 more than a million workers across the UK and almost a million savers, have committed to maximising employee pension value by prioritising outcomes for savers over cost in 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 and the Mansion House Accord and Compact.