Part of the implementation into Crystal is the transfer of members’ funds from their previous investment manager to Crystal’s investment choices, as selected by the Trustee. This is referred to as an Asset Transition.
Before the Asset Transition can proceed, certain aspects need to be considered and decided on.
It will be up to the Trustee of the current scheme to decide if a transfer of all funds will be completed with or without members’ consent. This may depend on the rules of the transferring scheme.
Thinking of the Members
If members’ consent is required, then a transfer discharge form will need to be completed by every member before the Bulk Transfer can proceed. If it is decided that a Bulk Transfer will be carried out without members’ consent, then the current pension arrangement will need to obtain an Actuarial Certificate prepared by the scheme’s Actuary.
It should be decided by the Trustee whether any transition costs or out of market losses will be covered and what those are likely to be.
All members should be informed of any intentions and notified of decisions made that affect their pension.
The next steps will be to request investment data from the previous investment provider, build an asset transition matrix and obtain information from all investment providers about in species transfer options.
BlueSky has managed a number of transitions over the years including:
- Investment Manager and fund changes
- Platform changes
- Whole scheme transitions
- Master trust and scheme wind up
During the transition, BlueSky will take full responsibility for:
- Obtaining relevant client contacts (employers/payrolls/investment managers)
- Providing Trustee Support – assistance with governance
- Full employer/payroll support throughout transition
- Sending implementation packs to employers/payroll which will include processes for ongoing contributions (account details and payment schedule)
- Arranging an implementation call with any relevant parties (payrolls/employers) to discuss ongoing contribution process
- Obtaining full member data
- Arranging correspondence from the Trustee to be sent to members informing them of the transition
- Conducting a data review and cleanse
- Completing a unit reconciliation to process Asset Transition
- Completing a fund mapping exercise
- Actioning the Asset Transition
- Sending a confirmation communication to members of the completed transfer
(All communications will be sent via email and detail secure log ins to the web service, MAP).
Full details of the investment transfer are reviewed by Crystal’s investment consultant and sent to your members in the early stages of the transition.
Transitions are carried out as part of the Client Services Team’s duties to enable new clients to begin their ‘Partnership’.