ABI Options scheme slashes pension transfer processing time by 65%
Almost half of the UK working population have two or more pension pots. And with around 27% of them considering consolidating now or in the future it is surprising that only 16% have actually done it.*
Now with the Options Service dramatically reducing pension transfer times one of the main transfer barriers has fallen.
Options – a highly effective solution that’s available today
Options, the Open Market Pensions Transfer Service, is an ABI-backed online transfer service. Since its launch in December 2008, it’s reduced the claim process time from an average of 31 days to 11 calendar days**. It works by both the ceding and receiving providers communicating and passing the necessary information to each other instantly online.
It all started out as a pilot in 2007 between AEGON, Legal & General and the Prudential who tested a new way of processing business. This successful first trial showed the way forward as it reduced the average transfer from 31 days to 19 – a huge improvement.
From this initial pilot, further refinements have broken down the barriers. Now, with market coverage across 6 leading brands, Options delivers an average turnaround of 11 days from the receiving insurer logging the case on to the Options website, to funds being received from the ceding insurer. That’s three weeks quicker than a couple of years ago. Indeed AEGON’s pension transfers are currently taking less than 10 days on average. Nichol Weatherston, Option’s chair and AEGON UK’s Head of At Retirement Operations, said “It’s very rewarding to see the real benefits being realised by clients and advisers alike.”
The improvements have been achieved by removing a number of the paper based transfer processes including discharge forms (which are now incorporated in the application forms), client authorisation forms and LTA forms. The model is based on trust and the businesses involved don’t even exchange the application forms as part of the process (this happens later if required).
What does this mean to you?
Options spells an end to transfer delays for Personal Pensions, which means happier clients and quicker commission, helping your cash flow in these hard times.
- transfers are no longer the slow option
- The inclusion of the discharge form in the application form means that you only need one signature
- less hassle and reduced cost for transacting transfer business
- you don’t have to call to chase the progress of your case
As a significant recognition for our efforts Options was recently awarded the ‘Innovation in Business Improvement’ award at the prestigious Scottish Financial Enterprise ‘Innovators awards.
Combined with our Flexible Personal Pension which offers market leading flexibility, it means transferring to AEGON has never been easier.
What do I have to do?
If the transfer is between two registered Options members, we will automatically use the system – you don’t have to do anything different. All you need to do is fill in the application form in the usual way.
Find out who’s registered: www.origoservices.com/optionsproviders