When assessing a potential new provider, or indeed when working with your existing provider to assess the service being provided, it is essential to understand your administration components plus how they may change in the future.
Additionally, try to understand what good looks like for each component as what makes one component ‘good’ may not be the same for other aspects of an administration service.
Key administration components in more detail
Looking at each of the key components in a little more detail, what are the features of each that should factor in an evaluation of administration?
Member self-service
If your scheme does not already offer member self-service it will have to do so in future as members will increasingly demand it. For almost all schemes self-service is something that will need to be outsourced, at least for its development. Not all TPAs has the ability to build member self-service platforms so you will need to also check the credentials of any third party that they select to supply it.
Be clear about what is meant by “self-service”: is this a “view” facility, one where illustrations can be obtained by members, or one where interaction between member and administrator is available in real time?
Apps are also becoming increasingly important, especially in the world of DC as open banking gains traction. This is being used with increasing frequency to bring together a helicopter view of a member’s entire financial portfolio, including pensions, and is an important tool.
Which provider a scheme member uses to get that helicopter view will vary and likely evolve, particularly as the national Pensions Dashboard is implemented.
It may be their current provider, the one with the largest DB fund or, in the future, one that provides other financial services and aggregates the member’s holistic financial provision – but the essential consideration is that your scheme has the functionality and the data quality to support it.
When considering member self-service you must also think of it as a journey and not a single exercise as both the scheme’s and member’s needs will evolve. For example, we are likely to see the development of ever more complex modelers and tools that give people real control over their pensions and signpost the need for more specialist advice through accumulation, retirement and decumulation.
Member contact
Direct member communication
How members engage with the scheme is particularly important, not least as it is also one of the fastest ways to find out when members are not happy.
