Administration standards and satisfaction levels in the UK pensions industry are improving, according to research by consultancy Aon Hewitt.

Announcing the results of the survey of 91 pension scheme members and trustees, Aon Hewitt said the study indicates more pension schemes are now describing their pension administration service as efficient and reliable.

Participants were asked to choose three words to best describe their current administration service. 60% of respondents described their current administration service as "efficient," 37% as "reliable" and 32% as "engaged." Only 13% described their administration as "slow" and 7% as "unreliable."

Administration service was described as "value for money" by 26% of respondents, compared with 7% who described it as "expensive”. 23% of respondents described their administration service as "innovative" compared to 2% who considered their administrator to be "unthinking", and 16% described their administrator as "old fashioned".

Benefits administration sales director at Aon Hewitt Colin Hamilton said it is in the interests of third-party administration providers to seek ways to offer greater quality of service and value in the current competitive environment.

“There is a lot of good work being done at an individual provider level to improve performance and the member experience.

“While these statistics are encouraging - particularly to those providers who have taken measures to adapt their working methods and improve standards - we should not treat them as evidence of widespread satisfaction across our industry. With the Pensions Advisory Service reporting no signs of a reduction in complaints associated with poor administration and with member expectations continuing to rise, it is clear that many administration providers need to do more to raise client and member satisfaction levels,” Hamilton said.

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