On the go: The cross-industry Transfers and Re-registration Industry Group has thrown its support behind an initiative aimed at raising governance standards over pension transfers.
Not-for-profit industry bodies TeX and Criterion have together developed the ‘Star’ initiative, which will govern TRIG’s new good practice framework aimed at improving savers’ experience of the transfer process.
The framework, which was published in June, dictates that most transfers should take place within two weeks, with occupational transfers granted a three week period.
Where transfers require numerous transactions and counterparties, each step should be completed within two days.
TeX and Criterion’s proposal included measures to set out how the framework will be financed, define the amount of support expected of regulators and participants, and draw up targets for the successful execution of the framework.
Today, TRIG announced that it was in favour of their proposal, which was made in September. It has received industry-wide support.
Guy Opperman, minister for pensions and financial inclusion, said: “For routine [defined contribution] transfers it makes sense, from both a competition and customer service point of view, that members are able to move their money swiftly.”
He added: “For many members moving money is straightforward, but for some others it’s far from effective and I’d urge firms to commit to the TRIG framework, as this is an area the government is keeping a close eye on."
The Pensions Regulator also welcomed the initiative. Lesley Titcomb, the watchdog's chief executive, said: “It is important that savers seeking to move pension pots between providers can do so promptly and safely and so we welcome the Star initiative, which raises the bar on the standards people can expect when transferring from a DC scheme."
She added: "We hope administrators of pension schemes will quickly embrace the proposed new framework, which will bring greater certainty and speed for transfers, giving savers improved control over their money.
“In turn, we expect the framework to deliver lower administration costs as providers experience a simpler experience when dealing with other organisations.”
