Publications
Good Practice Guidance on DC Transfers – Oct 2022
Driving improvement in DC transfers – blog May 2021
Introduction
The time taken to process transfers from occupation DC schemes, and the processes followed, vary hugely, with a resulting detrimental impact on the service offered to savers, and the trust placed in the Occupational DC scheme community. Some key issues:
- Some transfers take months to complete
- Processes followed can be lengthy and opaque
- There is a perception schemes try to hold onto funds for as long as possible, which can directly impact member benefits
The key objective of the PASA DCTVWG is to drive improvement in this area, enabling faster, well-communicated, efficient, cost-effective and risk-appropriate transfer processing strategies scheme administrators and wider stakeholders can execute.
The purpose of the PASA DC Transfers Working Group is to:
- Identify the barriers to faster, well-communicated, efficient, cost-effective and risk-appropriate transfer processing
- Find ways to reduce or eliminate these barriers
- Help PASA members comply with STAR reporting requirements
- Define the difference between “Standard” and “Non-Standard” transfers
- Set out ways in which an appropriate balance between speed and risk can be struck
- Set out good standards for all administrators to follow when processing DC transfers
- Provide a challenge to the Occupational DC Scheme community to improve its transfer processing, and complement other initiatives aimed at this common goal
- Publish guidance and information aimed at eliminating transfer delays
The group will use its skills, expertise and research to draft guidance for users and present its recommendations to the Board of PASA for consideration and approval for publication.
Deliverables
The working group shall deliver its recommendations by early 2022.
Priority order for deliverables:
(A) Standard transfers:
- define Standard transfers
- flowchart mapping out the transfer process from receipt of a request for a transfer value quotation from a member or representative (this means a request where some intervention is needed from the administrator and not a self service automated request) to the point of funds receipt
- good practice standards for all stages in the transfer process from receipt of a transfer value quotation request from a member or their representative to the point of funds receipt
- flowchart setting out the key steps in the transfers settlement process, from receipt of a valid member request for a transfer to proceed to the poimt of funds receipt. The chart to include signposting to other industry guidance to aid completion of the process
- good practice standards for transfer settlement tasks from receipt of a valid member request for a transfer to proceed to the point of funds receipt
- standard shared (ie for common use by administrators and member advisers) transfer information template
(B) Non-standard transfers:
- define Non-Standard transfers
- flowchart mapping out the transfer process from receipt of a request for a transfer value quotation from a member or representative (this means a request where some intervention is needed from the administrator and not a self service automated request) to the point of funds receipt
- good practice standards for all stages in the transfer process from receipt of a request for a transfer value quotation from a member or their representative to the point of funds receipt
- flowchart setting out the key steps in the transfers settlement process, from receipt of a valid member request for a transfer to proceed to the point of funds receipt
- The chart to include signposting to other industry guidance to aid completion of the process
- good practice standards for transfer settlement tasks from receipt of a valid member request for a transfer to proceed to the point of funds receipt
- standard shared (ie for common use by administrators and member advisers) transfer information template
Terms of Reference
TBC
Members
John O’Hara (Chair)
Katherine Kennedy (TPR Observer)
Louise Spicer (TPR Observer)