The automatic transfer of small pension pots could be dramatically accelerated by a project based on the system used to re-register assets from one platform to another.
The Tax Incentivised Savings Association (Tisa), which has spearheaded the development of platform-to-platform re-registration, is leading the project, which would use similar technology, processes and contracts, to make the government’s plans for automatic small pot transfers a reality.
In June the Department for Works and Pensions confirmed it would go ahead with proposals to create a pot-follows-member system, whereby pensions savings of less than a set level automatically move with an employee when they change companies.
Tisa director of policy Malcolm Small (pictured) said: ‘The industry needs it to be as quick as possible. The policy direction has been set. We cannot have this slow process, it needs to be quicker.’
Small said there was currently no standard contract for the pension transfer process, something Tisa’s technical committee was working to address.
‘We are dismantling the process and seeing what we can take out, what we can change,’ he said. ‘We have been looking at a new pension transfer process. [We want] to try to set out a standard service level agreement and sort out a common method of pension transfers that will be given to the market.’