Industry Group agrees new declaration wording to simplify and speed up pension transfer process for whole industry
Changes agreed this month between a cross-industry working group of personal pension providers and platforms will help make pension transfer processing simpler and faster, thereby improving the end consumer’s experience.
The Common Declarations Working Group is an industry-wide and independent group that was set up in 2015. Its remit is to manage the evolution of the Origo open Common Declarations agreed for pension transfers for the benefit of the whole industry. It is chaired by group member Les O'Hare of Prudential.
In order to carry out a pension transfer providers, platforms and trust based occupational pensions require certain forms to be completed by the parties involved, including the end consumer - i.e. for Pension Discharge, Life Time Allowance and Pension Commencement - and for these to be shared between the various companies involved in the transfer.
The 'Common Declarations' is an industry-agreed set of words that removes the need for these, typically paper-based, forms to be completed. The outcome is faster processing time, reduced cost and a considerably improved customer experience.
Les O'Hare, chairman of the Common Declarations Working Group, said: "The working group came together for the first time in December 2015 and was immediately effective in agreeing new 'Common Declarations' wording that will make pension transfers more efficient for the entire industry."
Membership of the Common Declarations Working Group is open to all organisations relying on the Common Declarations to manage transfer risk, regardless of what transfer service they use.
The 'Common Declarations' were originally developed by Origo in collaboration with members of the Options community to accelerate pension transfer processes. In 2013 Origo made the Declarations available free of charge to the industry as a whole, to help improve consistency and avoid the cost, confusion and risk caused by multiple declaration approaches.