UK - Administration standards will have to be raised substantially to cope with the demands of defined contribution sch-emes, Paymaster sales director Nicholas Wheeler said.
He told delegates the growing popularity of DC schemes and the myriad investment options they offered to members meant there was a far greater chance of administration errors occurring than ever before.
Other challenges include member expectations, handling multi-manager funds, lifestyle processing, and real-time and dealing cycles. As a result, he said that administrators must work with fund managers to improve communications, authorisation and reconciliation procedures and automate systems.
Wheeler added: “The secret of successful DC administration is ensuring that data and processes are 100% correct, 100% of the time.”
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There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).