Pension transfer providers believe The Pensions Regulator (TPR) should issue guidance to trustees to simplify and speed up the process, according to a government report.
Department for Work and Pensions (DWP) research found providers believe transfers from occupations pension schemes were "particularly complex" - often due to involvement of trustees.
They cited complex scheme rules and ‘archaic' administration systems as other problems which slow down pension transfers. Transfers between group personal pension were not deemed as difficult.
Processes and costs of transferring a pension scheme was carried out to investigate the costs involved in transferring defined contribution pension pots from one provider to another.
It highlighted that transfers from occupational schemes have to be approved by a trustee signature. It said this can "take a considerable amount of effort and delay the transfer process".
As a result several providers questioned whether this requirement should be removed, under certain circumstances, for example if the pot is under a certain value.
"They felt that this could remove a significant time-consuming step in the transfer process of occupational schemes; and some providers mentioned the possibility of approaching TPR to provide such guidance," the report said.
The report - which canvassed opinion from more 15 providers and their administrators - also found the involvement of an IFA meant pot transfers were more likely to be completed correctly, the first time and less likely to be terminated mid-way through.
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From 6 April 2019