PRESS RELEASE – PASA announces DC Transfer Working Group

4 May 2021

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“The group will use its skills, expertise and research to draft Guidance and present its recommendations to the PASA Board for consideration and approval for publication.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.

ENDS

Notes To Editors

The Pensions Administration Standards Association (PASA) has been created to provide an independent infrastructure which will set, develop, guide and assess administration standards.

PASA will act as a focal point and engage with industry and government to create protocols for understanding good administration – but also appreciates there is no one size that fits all.  PASA will develop evidential accreditation practices which will allow benchmarking across and between the industry regardless of how the administration is being delivered.

As well as raising the profile of pension administration generally, PASA will focus on three core activities.

1. Defining good standards of pensions administration relevant to all providers, whether in-house, third party or insurers
2. Publishing guidance to support those standards
3. Being an independent accreditation body, assessing the achievement of good standards by schemes (regardless of provider)

There is no organisation providing such services across schemes, yet there is a demand for evidence of service quality from scheme trustees, sponsors, administrators, insurers, scheme members and regulators.

About PASA Accreditation

PASA Accreditation is open to all corporate members of PASA (DB, DC, trust-based and contract-based schemes).  PASA Accreditation is granted following an independent evaluation and assessment process, which includes on-site visits and the review of documentation to evidence controls, procedures, process, staff development and contractual positions with clients.

Full details on PASA can be found by visiting www.pasa-uk.com

Full details on PASA Accreditation can be found by visiting https://www.pasa-uk.com/accreditation/

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