PASA has been concerned for some time about the huge variation in time between members requesting transfers from occupational pension schemes and the payment being made to their provider, or scheme of choice. The complex nature of DB trust schemes makes a standard transfer processing time challenging and increased DB specific governance legitimately holds up the process and must be recognised.
Pension freedoms, larger transfer values and greater adviser activity have more than doubled the volume of transfer quotation requests, putting great strain on administrators. Scam activity must also be taken into account, for we cannot sacrifice benefits safety in the interest of fast transfers.
The Purpose of the PASA TVWG is to identify current issues and potential solutions relating to the administration of DB trust based pension transfers by looking at the transfer supply chain for occupational schemes and helping improve the experience for all parties.
The TVWG will review the transfer information and payment processes to develop realistic standards which members and the industry can depend on, ensuring they are aligned as far as possible with the IFA and insurer community.
The primary deliverable of the TVWG is to look at the whole transfer process to find efficiencies and produce better, faster outcomes for members.
The group launched Part 1 of it’s DB Transfers: Processing standard cases Guidance in July 2019.
This document is Part 1 of a series of two relating to ‘standard’ or straightforward cases. Part 2 will cover ‘non-standard’ or complex cases.
The group plan to launch a consultation on it’s forthcoming DB Transfers Code at the PASA Annual Administration Conference in February 2020. The Code will combine the Part 1 Guidance and Part 2 Guidance on ‘non-standard’ or complex cases. The consultation will close on 24 March 2020 and the Code will be published in Summer 2020.
Margaret Snowdon (PASA Sponsor)