Financial services software specialist Chambers Townsend Consultancy (CTC) is looking to launch a...
Financial services software specialist Chambers Townsend Consultancy (CTC) is looking to launch an internet-based pensions administration system this September, writes Susan Bell.
It intends to bring out e-stakeholder in conjunction with a life company and is testing a pilot model.
CTC director Nigel Chambers said e-stakeholder would reduce the costs of pension administration and allow product providers to offer stockholder pensions within the Government's terms.
The annual cost of running a pension scheme averages around £40 a member, according to CTC, and this included processing new members and departing entrants as well as processing contributions and retiring members' benefits.
Under the new system, Chambers believed this cost could be at least halved. He said: "US data shows the cost of answering queries over the internet is 1% of the cost of staffed phone lines."
The new system provides a central database that can be accessed by all parties - scheme members, employers, advisers, providers and fund managers - over the internet. Each piece of information currently has to go through a costly and time consuming chain of groups.
The system will have secure audit trails to trace who has been into the database and what has been changed. It will provide access to information booklets, benefit statements, investments and performance data and retirement benefits projections.
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