The Pensions Administration Standards Association (PASA), the independent body dedicated to driving up standards in pensions administration, today unveiled details of its DC Transfer Working Group. Its scope will cover transfers between DC to DC arrangements; to Trust and Contract-based schemes, both UK and overseas:
PASA Chair, Kim Gubler commented: “Transfers between trust-based DC schemes is a key, and growing, part of PASA’s remit, so it should come as no surprise we are announcing the formation of a DC Transfer Working Group, with a key objective of driving improvement in this area. The time taken, and the processes followed, vary hugely, with a resulting detrimental impact on the service offered to consumers, and the trust placed in the trust-based DC community.”
John O’Hara, Chair of the PASA DC Working Group and Programme Manager at Origo, PASA Experts for Transfers continued: “Some of the key issues experienced include the time it can take for transfers to complete, member confusion and the perception schemes try to hold onto funds for as long as possible. Our main purpose will be to:
- Identify the barriers to faster and lower risk transfer processing
- Find ways to reduce or eliminate these barriers
- Help PASA members understand 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 Trust-Based DC community to improve its transfer processing and
complement other initiatives aimed at this common goal.
- Publish guidance and information to help eliminate transfer delays
“The group will use its skills, expertise and research to draft Guidance and present its recommendations to the PASA Board for consideration and approval for publication. This will help facilitate fast and risk-appropriate processing of DC transfers across the whole spectrum of UK trust- based schemes, irrespective of size, contribution status and administration model.”
Full details of the Working Group can be found here, first guidance is expected in early 2022.