Origo to facilitate DB transfers through Options service
Not-for-profit FinTech company Origo says it is able to facilitate the transfer of pensions from defined benefit (DB) schemes to defined contribution (DC) schemes via its award-winning Options Transfers service, thereby speeding up the process for the end consumer.
Paul Pettitt, Managing Director Origo, says: “You only have to read the trade and national press to see the high level of demand that is being generated by Pensions Freedoms to switch from DB to DC schemes. This is a trend that is set to continue as people want to access the greater control and flexibility available to them in respect of their retirement funds, which not all pension funds allow.
“It is vitally important that anyone looking to switch their pension from DB to DC takes professional advice to ensure it is the right course of action for them given their individual circumstances.
“If, having taken advice, the decision is to move forward with the transfer, then the scheme actuary needs to be involved to calculate a transfer value (TV). For many schemes this would then lead to a paper process to carry out the transfer. But using the Options Transfers service, the execution of the transfer instruction and payment can be automated, and tracked. This can significantly speed up and improve the process for the end consumer and their adviser.”
The business procedure that pension providers and scheme administrators currently use for DC schemes transfers via Options can be used to carry out DB transfers making the process simpler, smoother and swifter for all involved, Pettitt adds. “Providers and administrators simply have to contact Origo to ensure the relevant agreements are in place to enable them to use Options to conduct transfers from and or into their schemes.”
One of the issues currently being examined by the regulator is the slow transfer times and lack of transfer automation by the trust-based occupational sector. The FCA has tasked an Industry Working Group, comprising a number of industry bodies, to drive forward best practice in transfers.
“Automation of the transfer process can significantly improve schemes’ current, often paper-based, manual processes and we will be looking forward to reading the Working Group’s report and contributing to the consultation process,” Pettitt adds.