PensionsMay 26 2023

PensionBee promotes faster electronic pension switches

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PensionBee promotes faster electronic pension switches
PensionBee has repeatedly led calls for a 10-day pension switch guarantee. (Pexels/Stas Knop)

PensionBee has adopted ViaNova switching standards for pension consolidation to promote a faster and more efficient service for clients.

ViaNova is an industry working group that sets standards across fund providers, pension providers and platforms to allow automated pension switches at super-fast speed. 

The use of open standards gives users permission to copy, distribute and use technology freely or at a low cost to improve the experience of clients.

PensionBee has repeatedly led calls for a 10-day pension switch guarantee, which would ensure switching providers is a “quick, efficient and secure process” which happens electronically within 10 days. 

PensionBee is now adopting ViaNova open transfer standards to promote faster electronic pension switches with a number of pension providers and third-party administrators including Fidelity, Hargreaves Lansdown and Willis Towers Watson. 

Pension software developer Equisoft will provide the back-office system that will give PensionBee the capability to complete transfers through ViaNova. 

Since implementing Equisoft, the average time taken for the relevant switches from request to completion with PensionBee, has reduced from 53 to 20 days, marking a significant improvement in transfer efficiency. 

Romi Savova, PensionBee's chief executive, said: “A wider adoption of open standards across the pension industry is an essential step in accelerating the shift to a necessary common digital infrastructure for pension transfers, which will benefit millions of consumers across the UK.

“However, self-regulation is not enough and we once again call on regulators to implement a 10-day pension switch guarantee, a time frame the Financial Ombudsman Service is already independently enforcing. This is essential to help restore confidence and trust in the pension system, allowing consumers to take control of their financial future and plan ahead for a happy retirement.”

Andy Hussey, co-chair of ViaNova, said: “The objective of ViaNova has always been to facilitate the automated procession of pension transfers by creating open data standards available to everyone who works in our industry in order that they can better serve their clients.”