The Pensions Administration Standards Association (PASA), the independent body dedicated to pensions standards, is launching a voluntary mediation service.

The service is designed to resolve the issues experienced by schemes during the transfer of administration services from one provider to another.

Margaret Snowdon, chair of PASA, said the service is a natural extension of its work in this area.

She said: "Changing administrators might be a relatively rare occurrence, but when it does happen the process must be smooth, safe and hassle free for all concerned - this is only possible when the ceding and receiving administrators work in co-operation."

"We have been very clear on its position in this area, publishing our Code of Conduct on Administration Provider Transfers in 2013 and requesting that all members adhere to it."

"The introduction of our mediation service was therefore a natural extension of our work here."

Snowdon added that PASA aims for trustees to be able to rely on the organisation as a means of indicating the quality of service provision.

She said: "As well as empowering administrators to be the best they can possibly be, we want trustees to be able to reply on us for quality of service, which starts with the appointment and exit processes."

From 1 January 2018, PASA members will be required to comply with the Code of Conduct and PASA will interceded if a need is identified around unreasonable delays, fees, or expectations."

PASA's mediation service will be voluntary and non-binding, seeking to bring all three parties; the scheme, ceding and receiving administration providers together for practical and fair solutions in line with good industry practice.

The mediators will be independent of administration firms to avoid conflict of interest and PASA intends to publish details of the scheme for formal launch in January 2018.

First published 05.10.2017

Lindsay.sharman@wilmingtonplc.com