UK - Industry standards for third-party administrators are way below trustees' and scheme managers' expectations, a leading provider claims.
And Accenture HR Services believes “great improvements” are needed to meet schemes’ demands for improved administration accuracy and speed.
Head of pension services Ian Townsend said: “Our industry data suggests that most pension managers and trustees are not wholly satisfied with services provided by both in-house and outsource suppliers in terms of accuracy and speed.
“Administrators have a role in helping to rebuild the trust and confidence of the UK population in pensions in general.”
Watson Wyatt head of administration practice Allan Course agreed that a number of TPAs were not performing satisfactorily.
He said: “The trick is first to understand what makes a good administrator – that is competency in systems, procedures, controls and personnel.”
And he said that trustees and sponsoring employers could not take it for granted that TPAs were keeping full, accurate and up-to-date member records that indicated how contributions had been invested on members’ behalf.
Contract-based schemes could face requirements to disclose their firms' policies on environmental, social and governance (ESG) issues under Financial Conduct Authority (FCA) plans.
Kate Smith has been named head of master trust at Aegon following the acquisition of BlackRock's defined contribution (DC) businesses.
Andy Palmer says trustees and employers should prepare for a no deal, which could pose big risks to sponsor covenants