Big gulf between best and worst when it comes to Master trust service standards

Latest analysis into Master Trusts by LCP, has highlighted the growing gulf between providers when it comes to service standards and the need to understand the detail of each provider’s offering when going through selection.  

For key metrics that act as indicators of administration performance such as helpline answer times and performance against agreed service standards for a range of tasks, the analysis shows a 25% difference in the range between the best and worst providers when it comes to service standards. LCP believes that this could raise the question about how robust some providers would be in coping with any shocks and sudden increases in demand. The quality-of-service delivery and the extent to which providers are responsive to member engagement varies across the market. ​This will become an increasing focus when the Government’s new value for money framework comes into effect.

The Master Trust market remains a highly competitive one, with a clear strategy and a track record of proposition development contributing to success. Providers are working across a whole range of areas to ensure that their propositions remain competitive. There is particular activity in front-end member facing services such as improving service standards, member engagement, financial wellbeing and post- retirement.

Other key points in the report that LCP make about the market are:

• If they go ahead, the potential reforms announced as part of the Chancellor’s Mansion House speech could result in further consolidation of the master trust market, so understanding the provider’s business plans and selecting a provider that is well-placed to remain in the market is an increasingly important consideration.
• Engagement in DC schemes remains a challenge, but some providers are having success in getting members to engage with key tasks or via certain channels (eg. Apps). Understanding best practice in this area will help you assess the solution that’s best for your members.
• Decumulation options are evolving into broader service-based solutions rather than simply investment propositions. This was the most notable area of development over the last year and one in which a range of providers are set to bring solutions to market over the next 12 months.