UK - Employers could slash their money purchase operating costs by 50% if they dropped third-party administrators in favour of "semi-bundled" packages, Standard Life claimed.
Corporate pensions director John Taylor agreed that traditional bundled packages from insurers were “inferior” to unbundled arrangements.
But he said the advent of open-architecture systems and improvements to admin platforms meant one-stop providers could offer “credible” alternatives in the form of semi-bundled DC packages.
He said Standard Life’s own research concluded that – assuming a 0.4% per annum administration charge for a DC scheme with fewer than 2000 members and average contribution levels at £200 per month – the total costs for TPAs were 50% higher than going with a semi-bundled package.
The British Medical Association (BMA) has warned chancellor Philip Hammond to reform the NHS pension scheme rules or doctors will reduce their working hours.
The lifetime allowance should be scrapped and replaced with a lower annual allowance, last week's Pensions Buzz respondents said.
Action for Children Pension Fund has outsourced its pensions administration to Trafalgar House.