The Pensions Administration Standards Association (PASA) has launched a new DC transfer working group.
This new group will aim to drive up standards in this area and will cover pension transfers between different DC arrangements. This will include trust and contract-based schemes both in the UK and overseas.
PASA chair Kim Gubler says: “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.”
The first guidance from this new working group is expected in 2022.John O’Hara, chair of the PASA DC Working Group, and programme manager at Origo says: “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.”
He said the main objectives of this new working group would 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
O’Hara adds: “The group will use its skills, expertise and research to draft guidance and present its recommendations to the PASA Board for consideration and approval for publication.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.”