The success of the governments pot follows member pension transfer system will depend on efficiencies and long-term cost management across pensions and investment firms, according to a standard-setting body for eCommerce.
Orgio said today that the Department for Work and Pensions planned pension transfer system would have to deal with the increased number of small pension that would need to be transferred between employers' pension schemes. This was a result of auto-enrolment - introduced in October 2012 - which is currently still being rolled out to hundreds of thousands of small businesses, the industry body said.
As a result, it said there were four key requirements for an industry-wide PFM pension transfer service that could improve efficiency in the sector.
These include that the service must be open to all pension schemes and providers, but with appropriate due diligence carried out on all those wishing to join.
In addition, its process must be swift and safe and provide good value for pension schemes and providers to enable them to lower their processing costs as part of a 'future-proofed' service for the whole industry.
Paul Pettitt, the firm's managing director, said: 'For the DWP's preferred federated model of delivery to work effectively, these transfers need to be carried out by trusted, efficient operators who can both manage the potentially very high volume of transfers and who can do so on a cost sensitive basis over the long term.'
Orgio's shareholders include Aegon, Aviva, AXA Wealth, Legal and General, Prudential, Scottish Life, Scottish Widows and Standard Life.
