Options initiative shows progress - Pensions - News | moneyfacts.co.uk


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Options initiative shows progress

Options initiative shows progress

Category: Pensions

Updated: 18/03/2010
First Published: 17/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Customers are benefiting from quicker processing times for pensions and annuity changes as a result of the Options transfer initiative, the Association of British Insurers (ABI) has said.

The scheme was introduced in December 2008 with a view to speeding up the exchange of information and funds between pensions and annuity providers.

And latest figures show that participating pension and annuity providers took an average of 11 days to complete Open Market Option Transfers in the fourth quarter (Q4) of 2009.

This compares favorably to the average of 31 days which was recorded before Options was introduced.

Over 12,000 transfers were completed during the three month period, with 37 per cent done so in less than seven days.

"Historically, processes for transferring defined contribution pension benefits have sometimes been more difficult and time-consuming than consumers, advisers or providers would want and our aim from the start has been to put this right," said Maggie Craig, ABI director of life and savings.

"Despite the addition of new pension providers and increased transfer volumes performance has remained steady."

MGM Advantage took the honours for the speediest transfers, with an average of 6.4 days.

Guardian and The Co-operative Financial Services also impressed, averaging transfer times of seven days and 7.4 days respectively.

Pearl Assurance has the longest transfer times, at almost 28 days.

Why not take a look at our pensions table now!

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.