The e-commerce standards and services body says providers will need to demonstrate proven efficiencies and the ability to control long term costs if they are to become a player in the DWP’s preferred federated delivery model that aims to ensure a number of providers compete for transfer business.
Origo cites four key requirements needed to develop an industry-wide PFM pension transfer service. Providers must be open to all pension schemes and providers, able to swiftly and safely process tens of thousands of pension transfers each month, be good value and help schemes and pension providers to lower their processing costs and invest in future process improvements.
Origo is hoping it will be selected as one of the transfer operators within the DWP’s federated model.
Origo managing director Paul Pettitt says: “For the DWP’s preferred federated model of delivery to work effectively, these transfers need to be carried out by trusted, efficient operators who can both manage the potentially very high volume of transfers and who can do so on a cost sensitive basis over the long term.
“As a not-for-profit organisation, Origo has been instrumental in leading the development of electronic pension transfers via our Options Transfers service since 2008. Over the last six years we have helped to dramatically increase the speed and efficiency of pension transfers so that now, through Options, automated pension transfers have been taking place in as little as 45 minutes.
“Options is open for any pension provider or scheme in the industry to apply to join and currently has over 60 brands on the service. Every month it quickly and safely processes around 40,000 pensions on behalf of customers, and has the potential to deliver significant savings on an organisation’s operational costs.”
