I’m a fan of Angela Straral, I’m a fan of People’s Pension. But I wonder what the future of pension transfers will be- when DC pots can transfer to CDC.

Here is Angela introducing People’s Pension’s proud boast that it has speeded up it transfers in (and presumably out) of DC pots.

But I wonder how they feel about what Collective Pensions will do to their seemingly unstoppable ascendancy. Is it possible that the unions who have had such a major part in People’s Pension’s history will ask it to offer pensions rather than pots? Or will the flow of assets which for the past 15 years  flowed to their DC master trust start moving to CDC plans pitched as workplace pensions to their employers?

UMES CDC pensions, the ones you can save into, are getting a lot of interest and if employers choose to move to collective pensions then they’ll likely consult with their staff as to whether the employee pots transfer to the new collective plan.

We have a lot of thinking to do and there are ways that People’s have pioneered that do not need to involve bulk transfers without member consent. I think all parties including Government would like members make informed choices as to what happens to their pots.

I was pleased to read from Angela how People’s are progressing

The pension industry has made great progress in cutting down transfer times. At People’s Pension, we focused on simplifying the transfer journey, reducing manual intervention and improving customer communication. We removed unnecessary friction by investing in automation and improved workflow. As a result, transfers are faster, while we continue to maintain strong governance and controls.

All of this I agree with and it’s as important for transfers out as transfers in. I do not see “promotion” as part of the job of contact centres, they are not to convince members of one course of action over another. Their job is to provide the information for member’s to make decisions. This is just what I’d say, if I had the intelligence to say it

The industry has understandably focused on speed. The next phase must focus on outcomes. A transfer completed in days rather than weeks is only a success if it leaves the saver in a better position.

Savers require clear, accessible information to make informed decisions. Transfers should be about what’s right for an individual in the long term, not just in the moment.

The decision  for  employers is just starting, the battle for the hearts of members is some  way off and will play out in all kinds of way with media, unions, advisors and employers playing a part in the question “pot or pension?”.

The people who should not have to promote one course over another are those in the contact centres or indeed the trustees of collective schemes. The CDC Code laid down by the Pensions Regulator makes it clear that CDC trustees should not be promoting CDC as better and I think this extends to their administrators and member support.

What everyone needs to be concentrating on is the efficiency and speed of transfer and the tools and people in place to help members take informed decisions that are right for them.

I stand on shoulders of giants discussing transfers with People’s Pensions.  Merging DC pots is progress , but should we transfer to retirement freedom or a collective pension? That’s the thing!