Not-for-profit financial services connectivity body Origo says it will speed up DB to DC transfers by facilitating transfers through its Options Transfers service.
Origo says the business procedure that pension providers and scheme administrators currently use for DC to DC transfers via Options can now also be used to carry out DB transfers.
The FCA is currently scrutinising the slow transfer times and lack of transfer automation by the trust-based occupational sector and has tasked an Industry Working Group to drive forward best practice in transfers.
Origo managing director Paul Pettitt says: “You only have to read the trade and national press to see the high level of demand that is being generated by pensions freedoms to switch from DB to DC schemes. This is a trend that is set to continue, as people want to access the greater control and flexibility available to them in respect of their retirement funds, which not all pension funds allow.
“It is vitally important that anyone looking to switch their pension from DB to DC takes professional advice to ensure it is the right course of action for them given their individual circumstances.
“If, having taken advice, the decision is to move forward with the transfer, then the scheme actuary needs to be involved to calculate a transfer value. For many schemes this would then lead to a paper process to carry out the transfer. But using the Options Transfers service, the execution of the transfer instruction and payment can be automated, and tracked. This can significantly speed up and improve the process for the end consumer and their adviser.”
“Providers and administrators simply have to contact Origo to ensure the relevant agreements are in place to enable them to use Options to conduct transfers from and or into their schemes.”
“Automation of the transfer process can significantly improve schemes’ current, often paper-based, manual processes and we will be looking forward to reading the Working Group’s report and contributing to the consultation process.”
