Pension funds face capacity crunch

A survey by the National Association of Pension Funds has found 81% of schemes expect that the volume of change in the next 12 months will affect service levels for members.

The abolition of contracting out is seen as the greatest concern by pension schemes, while businesses are most worried about the implementation of automatic enrolment, with 87% saying it was a cause for concern. Other concerns were pension liberation and the administration of pensions tax relief.

Joanne Segars, chief executive, NAPF, said: “The pensions sector is facing a ‘capacity crunch’. The NAPF and its members have worked hard to shape and deliver effective reforms that bring positive results for pension savers, but this stack of change threatens our members’ ability to continue to deliver business as usual.” Segars added: “We need to press pause, prioritise what really matters and deliver automatic enrolment effectively – making sure we build the very strongest foundation on which to build sustainable and positive change for the future.”