“Transferring benefits from trust-based pension schemes with a mixture of DB and DC, which is a large element of what we do, is always more complicated and time intensive when compared to transfers between contract based DC schemes.
“However, we constantly strive to enhance our service and apologise for any unnecessary delays experienced.”
There are also many parties involved with transfers, and differences in the process with each individual scheme, which can lead to varying turnaround times.
A Mercer spokesperson said: “As a pension scheme administrator, there are differences in approach and processes relating to DC and DB transfers which in turn drive different timescales for completion.
“However, with all transfers, some of the controls and processes we undertake are reliant upon information and instructions from various third parties (such as the scheme trustees, actuaries, insurers, members, financial advisers).
“On rare occasions there can be delays receiving this information but, in all circumstances, Mercer seeks to keep affected members updated.”
LOAs
But transfer timescales are not the only issue that advisers are battling with.
For some time now, letters of authority have been the bane of many advisers’ lives.
Cooke said this was another recurring issue as companies are sending out 'standard' information packs in response to LOAs which don't actually tell you everything they need to know so advisers end up having to go back and chase them.
“That wastes our time and theirs,” he said. “This really would be very easy to fix.
“That's before we start on the transfer process. When the new rules to try and prevent scams came in nearly all providers went over board and put stops on transfers even to reputable companies.
“That seems to have calmed down a lot now and a more sensible, pragmatic approach is taken by most but by no means all. Some still 'red flag' perfectly innocuous transfers and delay them. “
Speaking to FTAdviser, Dominic James Murray, chief executive and IFA at Cameron James, said ‘sludging' is a very real "silent issue" in the UK pension transfer industry from both defined benefit and defined contribution scheme providers.
“It can, at times, take 15 to 20 working days for ceding schemes to simply place our letter of authority on file.
“When clients give guaranteed CETVs that are expiring, these ridiculous LOA timelines can eat a whole month of the permitted FCA timeline that our clients have to take advice regulated and authorised advice.”
Murray argued this is unfair for DB members trying to make one of the most important financial decisions in their lives.
