The Pensions and Administration Standards Association (Pasa) has published new guidance on defined contribution (DC) transfers, which aims to “drive high standards and improve transfer option communications".

The guidance highlighted several new legislative obligations that require “significant” effort from all organisations involved in pension transfers, with new requirements placing additional obligations on those involved in pension transfers to protect individuals against scams.

The primary aim of the guidance, according to Pasa, is to improve the overall saver experience through faster and more secure transfers, which it hopes to achieve by setting out a standardised and non-prescriptive process flow for transfers.

Although the guidance is not prescriptive in how such obligations are dealt with, it stressed that these obligations now form a "significant" part of the pensions landscape, explaining that participants “must” ensure they meet their obligations accordingly.

In particular, the guidance recommended that trustees agree acceptable Service Legal Agreement timescales for processing transfers upfront with their administrators, set within the context of an ever-changing regulatory environment.

In addition to this, it suggested that template communications could provide an important leg-up, particularly for smaller organisations with smaller resource pools.

Pasa additionally advised trustees to improve communications and transparency in the processing of transfers in order to keep savers and stakeholders better informed and to improve efficiency for all involved.

Pasa DC Transfers Working Group chair, John O’Hara, commented: “The pension transfers landscape has experienced many changes in recent years and the primary aim of this guidance is to improve the overall saver experience through faster and more secure transfers.

“The guidance sets out a standardised and non-prescriptive process flow for transfers, highlighting the important ‘what’ rather than ‘how’, and a recommendation trustees agree acceptable Service Level Agreement timescales for processing transfers upfront with their administrators’ template communications for improving transfer processes.”

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