The Living Pension accreditation now extends to Defined Benefit pension schemes, the Living Wage Foundation announced today. The Living Wage Foundation can also reveal that two employers who provide Defined Benefit pensions, Rossie Young People’s Trust and Hebridean Housing Partnership, are the latest to gain Living Pension accreditation thanks to the extension of the scheme.
The Living Pension accreditation builds on the success of the Living Wage by providing an annual savings target for Living Wage Employers who want to help their workers build a pension pot that provides enough income to achieve a basic standard of living in retirement. It launched in March 2023 and there are now over 70 accredited Living Pension Employers.
The Living Pension was initially developed for Defined Contribution (DC) pensions. The Living Pension savings target for DC pensions is 12% of a full time Living Wage worker’s salary, made up of a minimum 7% employer contribution. It can also be met as an annual cash amount based on the Living Wage each year. For 2024/25 this is £2,950 with £1,720 coming from the employer.
Following a feasibility study completed last year by Isio, a pensions and employee benefit consultancy, the Living Wage Foundation have now extended the Living Pension to Defined Benefit (DB) pensions.
Shelley Morris, Senior Project Manager at Living Wage Foundation, said:
“We’re delighted to announce that the Living Pension now extends to Defined Benefit pensions, ensuring we can recognise and celebrate employers like Rossie Young People’s Trust and Hebridean Housing Partnership who are providing financial security to their workers now and in retirement by offering these very valuable pensions.
Since 2011 the Living Wage campaign has built a movement of over 16,000 leading employers who have chosen to do the right thing and transform millions of people’s lives through decent pay. Because of their commitment nearly half a million people receive a vital cost of living pay rise every year and over £3.85 bn has been put back into the pockets of those who need it most. The Living Pension accreditation builds on the success of the Living Wage by providing an annual savings target for Living Wage Employers to provide workers with financial security now and in the future.”
Paul Moffat, Director of Isio, said:
“As a member of the Living Pension Steering Committee, it has been great to contribute to the development of this standard. Following the success of the DC Living Pension, we were tasked with developing an accreditation approach tailored to Defined Benefit schemes. Collaborating closely with the Living Wage Foundation and the Steering Committee, Isio provided technical expertise to shape a framework that enhances member understanding of their pensions.
This initiative is about more than just savings, it’s a commitment to clarity and long-term financial wellbeing. Being part of such a transformative effort highlights Isio’s mission to drive change in the pensions landscape.”
Martin Brown, Service Manager at Rossie Young People’s Trust, said:
“Rossie Young People’s Trust is delighted to be one of the first employers providing a Defined Benefit pension to obtain Living Pension accreditation.
As a medium size charity operating our direct benefit pension scheme, we have always placed the well-being of our staff uppermost in our values, reflected by being a long-established Living Wage employer and now a Living Pension employer.
We’re grateful to the Living Wage Foundation for setting these standards that all employers should be signing up to, and we are proud to be at the forefront of this initiative.”
Dena Macleod, Chief Executive, Hebridean Housing Partnership, said:
“Achieving Living Pension accreditation is more than a badge of honour for us — it’s a reflection of our goal to be an excellent employer. We want to ensure our people are not only supported in their roles but are also able to look to the future with confidence. We know the difference it can make in people’s lives — now and in retirement.”
