TISA Exchange (TeX) Calls for Low-Cost “Pot for Life” Data Exchange Framework Following Autumn Statement
TISA Exchange (TeX) has today announced a new project to ease the exchange of pension data among involved parties in response to the recent Autumn Statement.
The initiative follows Chancellor Jeremy Hunt’s announcement of plans to consult on a “pot for life” lifetime pension framework designed to reduce the build-up of small, legacy workplace pensions, empowering individuals to take control of their contributions.
Recognising the potential benefits for scheme members and the pensions industry, TeX acknowledges the challenges in establishing suitable infrastructure without adding unnecessary complexity. As a not-for-profit organisation, TeX is ideally placed to work across the whole industry to keep costs to a minimum.
The industry collectively established data standards for information exchange during 2015/16 in support of auto-enrolment. However, these standards have not achieved their full potential, reducing reliability due to lack of a robust governance framework.
TeX aims to build upon existing industry-wide transfers infrastructure and collaborate with pensions experts to determine the optimal model supporting the lifetime provider concept. The enhancement of data standards and governance could enable payroll providers to facilitate payments across multiple entities, leading to an industry utility ensuring cost-efficiency, reduced errors and improved service for customers and scheme members.
David Moffat, Chair of TeX said: “To streamline pension data transfer, our goal is to enhance industry-wide standards, ensuring cost-efficiency and superior service for all stakeholders.
“TeX remains committed to fostering collaboration for advancing pension management practices toward a more efficient and effective system.”