Partner Insight: Increasingly from a scheme perspective, keeping up with routine administration demands is only half of the challenge.
More and more schemes are focused on a clearly defined long-term objective. Although that objective might be defined in funding terms, administrators are increasingly being asked by schemes to undertake major projects that support the journey towards that objective.
Of course, such projects can be the result of an external trigger too; GMP reconciliation and GMP equalisation being very topical examples as we go to press. Whatever the trigger, we have certainly seen clients undertake more - and more complex - strategic projects over recent years. As we drive through these later stages of GMP reconciliation and await direction on GMP equalisation, we are working on more projects to deliver wider member options than ever before; whether they be pension increase exchange offers, flexible retirement offers or other exercises.
This is in a year when our Risk Settlement experts predicted that the bulk annuities market will exceed £30bn for the first time ever. Underpinning all these exercises will be good data, a topic the Regulator is focusing trustees' minds on, and administrators will always be central to measuring, monitoring and improving schemes' data.
When we add all these things together, it is clear the demands on administrators for additional project work show no sign of slowing. Balancing the everyday with the exceptional Day-to-day, the role of a pensions administrator is to support schemes in delivering better outcomes and a great experience for members.
This now means both the routine - handling queries quickly and accurately; ensuring member communications are clear and timely; settling the right benefits on time - and the additional projects that support longer-term objectives.
If you are a trustee or sponsor, how can you assess your current - or a prospective - administrator's ability to keep both of these plates spinning? Can they deliver on major projects without risking day-to-day service? When trying to achieve this balance, a few areas are key.
Click here to read the Guide in full and Aon's core tips to manage the changing pensions landscape.
