Providers hit back at adviser survey findings

Pension providers named as the slowest at giving information to advisers have hit back at the findings of an annual survey.

Each year Portafina’s annual list benchmarks the time taken by different pension schemes to provide the basic information necessary to advise clients on areas like the pension freedoms.

This year the analysis covers 13,021 requests for information made by Portafina on behalf of 7,008 new clients to 478 different defined contribution and defined benefit pension scheme providers and scheme administrators.

Equitable Life Assurance Society was ranked as the slowest DC scheme for the third year in a row, taking five weeks and six days on average to respond to queries about basic information.

DHL Group Retirement Plan was ranked as the second slowest DC scheme at five weeks to provide basic information.

The scheme for South Tyneside Council and Royal Mail Pension Scheme were ranked as the slowest DB schemes.

To be eligible for the tables (see below), the provider must have received requests for information by Portafina, and have provided information on behalf of at least 10 clients in the period from 1 January 2019 to 31 December 2019.

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The survey calculates the average time it takes for a provider to respond to requests for information by adding all the time it takes to handle each individual client case and then dividing that by the number of clients.

Canada Life and Scottish Widows were rated the quickest respondents for information on the DC list while the Railways Pension Scheme and Legal and General were fastest on the DB side.

Responding to the findings, a Royal Mail spokesperson says: “We don’t recognise these figures. Our own records show that all cases in 2018-19 and 2019-20 (year to date) have been completed within the statutory 13- week timescale. The typical response time is actually much shorter.”

A South Tyneside Council spokesman, on behalf of the Tyne and Wear Pension Fund, adds: “While the council aims to deal with all transfer requests as promptly as possible, our priority is protecting members from pensions liberation fraud.

“We have previously raised concerns with financial advisers about them not providing sufficient member authorisation before we can deal with any requests. Financial advisers being unable to get this authorisation can sometimes lead to delays.

“Our internal systems show that the average timescale to provide data, from the receipt of the appropriate authorisation, is just over four weeks. The fund is comfortable that its approach is consistent with the guidance from The Pensions Regulator.”

A DHL Group Retirement Plan spokeswoman says: “Our service level agreement specifies a response time of five working days per request, which we achieve in around 99 per cent of cases. However, due to the high number of enquiries we receive, we apologise to any members who have experienced a longer wait before they received a response.”

Equitable Life Assurance Society was not able to comment in time for publication.

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Portafina managing director Jamie Smith-Thompson says: “Equitable Life requires clients to call the scheme to provide additional information, but won’t tell us what that additional information is so the clients can’t prepare. DHL require an additional authority form to be completed, which is clearly designed as a barrier.

“A number of councils, including South Tyneside, require a client to contact them themselves to request a specific authority form to be sent to them, and then for the client to complete it and return it when it eventually arrives – just in order to provide the information necessary to advise the client. It is frankly ridiculous when you are a regulated adviser and you have the client’s clear authority to request what should be standard information on their behalf.”

2019 Results for Defined Contribution Schemes:

Fastest DC schemes based on average number of weeks to provide information

Slowest DC Schemes based on average number of weeks to provide information

2019 Results for Defined Benefit (Final Salary) Schemes:

Fastest DB Schemes based on average number of weeks to provide information

Slowest DB Schemes based on average number of weeks to provide information