16 September 2009
Latest Association of British Insurers (ABI) data reveals that
pension transfers using the industry Options system took 11
calendar days in the second quarter of the year.
ABI said this compared to transfer times of just eight days in
the first quarter, and the 31 day industry average in 2008.
ABI director of life and savings Maggie Craig said: "Although
there has been a slight increase in the average transfer time from
the first quarter, this should not detract from the efforts of
pension companies to improve performance on Open Market Option
transfers. The good news is that in just one year, the average
transfer times have fallen by nearly three weeks."
The ABI system - developed by e-commerce providers Origo, is
designed to speed up the exchange of information and fund between
pension and annuity providers. The transfer initiative has recently
been extended to incorporate pension-to-pension transfers, as well
as the existing open market option and immediate vesting personal
pensions service.
Five pension providers use Options for pension-to-pension
transfers, although ABI said more are expected to join in due
course. 14 companies are using Options for open market option and
immediate vesting personal pensions transfers.
The ABI urges companies who have not yet signed up to the
Options initiative to do so, in order for all pension customers to
receive the benefits.
