Pasa launches DC Transfer Working Group

The Pensions Administration Standards Association (Pasa) has announced the launch of a defined contribution (DC) pension Transfer Working Group, highlighting DC transfers as a "growing part" of Pasa's remit.

The group will cover transfers between DC to DC arrangements, as well as to trust and contract-based schemes, both in the UK and overseas, with the first guidance expected to be published in early 2022.

It will be chaired by Origo, Pasa’s experts for transfers, programme manager, John O’Hara, with further members to be announced in due course.

The main purpose of the group will be to identify the barriers to faster and lower risk transfer professing, and ways to reduce or eliminate those barriers, to define the difference between standard and non-standard transfers, and to set out ways in which an appropriate balance between speed and risks can be struck.

It will also help Pasa members to better understand Star reporting requirements, and set out good standards for all administrators to follow when processing DC transfers, as well as publishing guidance and information to help eliminate transfer delays.

Pasa chair, Kim Gubler, said that the formation of the working group should come as “no surprise” considering transfers between trust-based DC schemes are a "key and growing part" of Pasa’s remit.

“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,” she continued.

Adding to this, O’Hara commented: “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.

“The group will use its skills, expertise and research to draft guidance and present its recommendations to the Pasa board for consideration and approval for publication.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.”

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