JLT Employee Benefits boosts member pension transfer speed with Origo’s Options Transfers
JLT Employee Benefits ("JLT"), one of the UK's leading employee benefit providers, has enhanced its defined contribution (DC) pension transfer capabilities by signing up to Origo's Options Transfers service. The service will speed up transfers, lowering end-to-end transaction times to an average of six calendar days.
JLT is the first major third party administrator to use this automated system for pension transfers, which was originally designed by and for the insurance industry to transfer pensions and annuities between insurers.
The system applies to DC pensions, for example to move from an occupational DC scheme to a SIPP or other personal pension plan, often because the member wishes to access tax-free cash available to them.
Malcolm Reynolds, Managing Director, JLT Administration Solutions, says: "We are delighted to be able to enhance our transfer service to our customers, through our use of Origo's Options Transfers service. The old, manual transfer process, done through traditional paper-based processes, is very cumbersome and time-consuming, making it extremely difficult to comply with the Treasury's recommendation to execute it in under 35 days.
"We are constantly assessing ways to improve the member service experience through the use of technology and we are excited to be working with Origo to reduce transfer times and further enhance our already comprehensive service to our clients and their members."
Paul Pettitt, Managing Director of Origo, says: "The recently published response to the Treasury paper on pension transfers and early exit charges has further highlighted the need for fast and efficient transfer of pension pots and assets.
"Options delivers electronic pensions transfers, which in the contract market show a long standing average for transfer of six calendar days, compared to an overall average of 39 days quoted in the Treasury paper. This clearly illustrates the value of electronic pension transfers in significantly speeding up the transfer process, increasing cost-efficiencies, reducing risk and improving the member experience.
"In addition, Options provides for full audit and reporting capability for the entire end-to-end transfer process, enabling users to fulfil the new regulatory requirement for TPR regulated pension schemes to report on an ongoing basis how they are performing in processing transfers.
"Furthermore, as Auto Enrolment continues to provide new challenges for administrators and trustees, the Options Transfers service is perfectly positioned to help relieve this pressure."