Master trusts and buyout providers will be able to demonstrate the quality of their administration systems under a new accreditation standard to be launched by the Pensions Administration Standards Association (PASA).
PASA launched its first pilot of the new standard at the end of July, and aims to expand its existing accreditation framework to accommodate the growing number of master trust and buyout providers. PASA says it is launching the initiative in response to demand for evidence of service quality from scheme trustees, sponsors, administrators, insurers, scheme members and regulators.
PASA accreditation committee chair Lorraine Harper says: “With an increasing number of people set to have their pensions delivered by master trusts in the future, it is vital that steps have been taken to secure high standards of administration for these members. Whilst there may be assurances in place to assess governance standards for master trusts, there is no framework targeted specifically towards administration. Through its new framework, PASA will ensure the ongoing protection of these members, meaning they too can benefit from the good outcomes that come with a high-quality administration service.
“We are pleased to be launching our pilot programme, having worked closely with RSM to develop a set of standards which are both appropriate and assessable in the context of these different models over the past year. Given the strong pipeline of interest from Master Trusts and Buyout providers so far, we are excited by the appetite in this area and look forward to launching the accreditation to the wider market in the coming months.”