Pensions Simplification

Customer Service Strategy for Registered Pension Schemes

Introduction

This document sets out the general customer service standards that APSS will endeavour to meet in 2006-07.

It details our plans for dealing with specific types of correspondence in the transition to the new Simplified regime and our contingency plans should full online facilities not be available for any reason, or be available in a reduced capacity.

The service standards are those we are confident we can deliver based on projected industry/individual behaviours and volumes. Clearly if the behaviours and/or volumes are markedly different than expected we will have to review service standards. If this happens we will keep all parties informed via Pensions pages on the Internet

It is vital that we work together with industry and practitioners as we make the transition to the new regime as efficient as possible for each other and for the individual members.

Background

Until now the various pension regimes that schemes operated under were dependent on the publication of Pensions Notes, Pension Updates and the understanding of discretionary practices. The differing rules between regimes often caused confusion. The customer service provided by APSS has recognised the problems caused by this lack of clarity. We have been happy to assist and support customers by correspondence and telephone but this has been very demanding on resource.

Pensions Simplification brings a single regime for all pension schemes. It is based on legislation. We have provided (or are in the process of doing so) full guidance giving our interpretation of that legislation.

Industry will have access to the same information that is available to Operational people in APSS.

Going Forward

APSS is no longer resourced to provide the very high level of support that has been the case to date. And we should not need to. For the vast majority of queries in relation to the operation of registered pension schemes and the schemes responsibilities particularly in relation to its interaction with HMRC, industry and practitioners will be able to ‘selfserve’ using the information available on the internet- and they will be expected to do so.

In the future callers to the Help line will be asked whether they have tried to ‘self serve’ and if they have not will be asked to do so before calling in. Clearly this is only practical when full guidance is available but it is envisaged that this new approach will be fully introduced by April 2007.

In the transition APSS workers will provide assistance as appropriate but will be educating and reminding callers and correspondents of information available, how to access it and the need to make those information sources their first point of call.

There will be occasions when the answer to a query cannot be found in the guidance or legislation. This may be where an issue is particularly complex or a situation ‘falls’ between pieces of legislation. In these circumstances it is highly unlikely that Help line staff will be able to assist. These queries, and any pre-transaction type issues, should be submitted in writing and we would advocate use of Code of Practice 10 which sets out the facts and detail required to enable us to respond.

Help Line

There are currently three Help line numbers for pension schemes, being in relation to Occupational Pension Schemes (OPS), Personal Pensions (PP) and Elections to Contract Out.

From 27 March 2006 the OPS and PP Help lines will merge and there will be a single Help line telephone number for all scheme enquiries – this will be 0115 974 1600. This is the current OPS number. Any calls made after 27 March to the PP number will automatically be diverted to the new single number.

The Elections Help line is unaffected by this change.

Email Contact

From 6 April 2006 there will be a general email contact facility for this office. Links on the Internet will take customers to a template for completion and submission. There is a work management functionality attached to this facility and it would be appreciated if this channel be used for all email contacts. If you currently have and use email addresses for individuals in APSS would you please make all future contact through the general email channel. This will enable email traffic to be monitored to ensure consistency of customer service across the office and communication channels.

Email will not be appropriate for all communications, particularly those involving details of specific scheme or individual issues. This is because the security of output cannot be guaranteed. We will tell you if this is a problem. In other offices operating this system the majority of responses to queries have been found to be able to be answered in general or anonymised terms.

Individuals

APSS will deal with the tax affairs of registered pension schemes. All matters relating to individuals will be dealt with by the appropriate HMRC local service office. The only exception to this is with regard to claims for Enhanced or Primary Protection of Life Time Allowance, because of the very specialised nature of this work it will be held in APSS.

Process Now /Check Later

All Registrations of schemes, claims for LTA protection, reports, returns and declarations by Scheme Administrator will be subject to a ‘process now/check later’ regime. Whilst acknowledgements/certificates will be issued as appropriate schemes/individuals should be aware that the accuracy or validity of information provided maybe enquired into at a later date.

Prioritisation

LTA Protection

The online facility for LTA protection claims will not be available at April 2006. From
6 April 2006 until this is available claims will be submitted on paper forms. We anticipate receiving a large number of claims fairly early on. All claims will be acknowledged on receipt but there may be a delay in sending out the Certificate. If a claim is being submitted and the individual is planning to take benefits from the fund in the near future (within 3 months of the claim being submitted) it would be useful to have that information submitted with the claim form in order that it be given priority. We will endeavour to have the Certificate issued in time for the benefits crystallisation event.

For this system to work we are dependent on the integrity and co-operation of people submitting claims – if all are marked ‘priority’ our ability to filter and prioritise claims correctly will be compromised, with the possibility of some individuals being disadvantaged as a result.

The regulations provide for a 12 month enquiry ‘window’ in relation to LTA protection claims. Certificates will be issued before any ‘check later’ enquiries are considered.

Registration

The online facility to register a pension scheme and obtaining acknowledgement within 24 hours will be available from 6 April 2006.
In the event of any IT failing that requires Registration forms to be submitted manually, these forms will be given priority for action within APSS to ensure that Registration is acknowledged and tax relief able to be claimed with out delay.

Deferred Annuity Contracts

Where the declaration by a Scheme Administrator of a Deferred Annuity Contract made on or after 6 April 2006 is made on the paper form APSS108, this will not normally be given priority as it has no tax or tax relief consequences. However if the Scheme Administrator wants to register to operate Relief at Source on its contributions for the first time after 6 April 2006 the Scheme Administrator or their practitioner should also attach the completed form APSS103 and the relevant documentation to the form or make it clear on the declaration form APSS108 that this is the case and we will give it priority.

General Service Standards

  • Post Replied to:
    • in 15 working days - 91%
    • in 40 working days - 95%
  • Registrations turnaround:
    • by ‘e’ in 24 hours - 95%
    • paper, in 15 working days - 95%
    • paper, in 40 working days - 100%
  • Telephone response times:
    • answered in 20 secs - 95%
  • Email response times
    • answered in 10 days - 95%
    • answered in 15 days - 100%
  • Repayment claims
    • processed in 15 days - 95%
    • processed correctly first time - 95%
  • Cheques banked on day of receipt - 100%
  • Quality:
    • Post dealt with in 15 days completely and correctly - 80%
  • Complaints
    • d/w in 15 days - 97%
    • resolved at Tier 1 - 85%
    • acknowledged in 3 days - 98%