UK - Pension scheme administrators are under pressure to do more for lower fees, Hewitt Associates said.
The annual Hewitt Pension Administration Survey 2010 found reducing costs is now the prominent concern for 79% of pension managers and 58% of trustees.
Pressure to improve quality followed closely, with 59% of managers regarding it as a top priority and 43% of trustees agreeing.
It also showed 80% of trustees and 55% of managers want to improve service measurement standards, while 70% of managers and 40% of trustees want to employ a full data cleanse.
The survey - which questioned 97 UK managers and trustees from defined benefit and defined contribution schemes - found closure to future accrual and succession planning issues were fuelling change in administration strategy.
For example, 30% of respondents said closure to future accrual was the main reason for changing outsourcing strategy.
It showed 70% of respondents had considered freezing their schemes to future accrual,implying many more schemes will have to change their administration strategy in the coming year.
It also identified a trend towards standardising administration and more outsourcing of
broader pension functions.
Hewitt Associates pension administration business development manager Ian Terry said
many pension schemes faced the need to reduce costs while improving quality, at the same time as operating in a changing landscape where many DB schemes were halting future accrual.
He said: "This kind of complexity is leaving many pension schemes struggling to prioritise their limited resources. If schemes are to meet these challenges head on, the approach to pension administration must fundamentally change from the traditional model to one that is more customer-centric."
The survey also found increased desire for more stringent service measurement, and introduction of web and data cleansing to increase service quality and accuracy.
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