The F&TRC Workplace Forum is compiling guidance on group pension scheme establishment and contribution collection for providers and software vendors.
The guidance, which will be published in September, will aim to identify and develop good practice in an effort to reduce costs for employers ahead of auto-enrolment. It is being produced with 18 stakeholders, including providers, consultants and adviser firms.
IFA Origen is one of the firms providing input for the guidance. Head of business solutions Peter Fairweather says he expects it to be adopted by the industry within a “reasonable” time period. He says: “We anticipate this group can establish opportunities for firms to function in a consistent manner, to bring about reductions in costs for all involved and that a resulting good practice document will be adopted within a reasonable time period by participants in the market.”
F&TRC managing director Ian McKenna says: “It is my belief that after a decade and a half of creating electronic processes to operate contribution collection, as an industry, we should look at what lessons we have learnt, what works and what does not.
“Delivering business efficiency to customers should not be a competitive issue. There might be short-term tactical gains but the more variations in processes that exist, the more that unnecessary costs are perpetuated.”
Informed Choice managing director Martin Bamford says: “This guidance is welcome because history tells us that, left to their own devices, product providers are incapable of harmonising their processes and having to deal with a range of different processes causes a lot more work for IFAs.”