The civil service pension schemes are moving the administration of their active, deferred and pensioner members to a single system to reduce costs and increase member engagement.
The schemes are currently administered via government-backed mutual MyCSP through four different systems, and from July will process member data using third-party benefits software.
The system will also enable members and employers to upload data through a self-service option, as well as allowing employers instant access to any changes to member information.
Updating CSPS administration
MyCSP carried out a multi-channel communication strategy to inform members about the scheme changes from April 2015.
This included video, postal and online information.
The administrator also employed a team of four communications specialists to design the strategy.
The administrator launched an advice service for employers to help them communicate with staff about changes to the annual and lifetime allowance.
This included tax seminars for senior staff, projections for individuals to show the potential impact of tax in various scenarios as well as one-to-one sessions with senior staff.
“If an employer wants a quote in relation to a member, at the moment they have to email or phone us,” said Virginia Burke, business development director at MyCSP.
The self-service function will not be available to members immediately but should be rolled out before the end of the year, Burke added.
MyCSP, the first mutual jointly set up by the government, was created in May 2012 to administer civil service pensions, pulling together several different administration teams from the Department for Work and Pensions, and providers Capita and Xafinity Paymaster (now called Equiniti Paymaster).
It delivers benefits to 205 former and current government departments and around 1.5m members. Defined benefit schemes are increasingly moving towards using a single third-party administrator to process member data.
The HR team would traditionally handle the administration of pensions in the same way it would payroll, using up to a dozen systems, said Roger Higgins, partner at KPMG.
While DB schemes are a long way behind their defined contribution counterparts, Higgins predicted over the next few years there will be a dramatic increase in members logging into websites and accessing data. “What’s important there is making sure you have the data right for each person,” said Higgins.
Some DB schemes have switched providers during the past three years to centralise their administration, said Calum Cooper, head of trustee consulting at Hymans Robertson.
“[It will give schemes] more time on investment and ensuring the member experience is top notch rather than rolling your sleeves up and working with data,” Cooper added.
But it is less common for these schemes to offer members and employers a self-service option.
Cooper said trustees would need to be satisfied the scheme could offer members a secure way to access the benefits systems, which is only really possible if data are in one place.
