These benefit statements, otherwise known as Statutory Money Purchase Illustrations (SMPIs), must be provided annually to all Defined Contribution scheme members. At the moment these lengthy documents are delivered by post, chewing up vital provider resources in the process. In the future, with Imago Auto Engage, scheme providers will be able to discharge their regulatory duties at a fraction of the current cost by delivering SMPIs online through Imago Auto Engage.
Dunstan Thomas is already talking to a number of providers who have expressed interest in using the tool to reduce this administrative burden. Ideally all providers will agree to provide their members’ annual benefit statements through Imago Auto Engage.
As members come closer to retirement they will use Imago Auto Engage to help plan their at-retirement options. Dunstan Thomas also anticipates that providers will offer Apps for secure viewing and downloading of statutory documentation as one of many initiatives designed to cut administrative costs and improve member engagement.
The tool has been developed with Auto Enrolment (AE) in mind. Imago Auto Engage will enable AE pension holders to view all of their pension pots in one place. As the average worker today will have more than 11 employers throughout his working life, being able to view multiple pots in a single secure online location will become increasingly important.
Natanje Holt, managing director, Dunstan Thomas, explains:
“In the absence of a Pension Dashboard and following indications that ‘pot follows member’ proposals have been shelved, AE scheme providers need to find tools which help members keep track of numerous AE pots online. Younger people are moving jobs at least once every three years now and 25% of the working population will have more than 15 jobs in their working life, so it’s important that they can keep track of a number of pension pots as they accumulate them.”
Adrian Boulding, principal consultant, Dunstan Thomas, adds:
“From a provider perspective, offering this ready access to pot values via Imago Auto Engage is the most efficient and cost effective way of delivering annual benefit statements and other statutory documentation to members. It may also stimulate more members to transfer funds out of smaller pots into larger ones to reduce the administrative costs they are exposed to.”
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