Seamless transition to outsourced scheme secretarial services

Transitioning from an in-house scheme secretarial service to an outsourced third-party provider is a significant step for any organisation, especially when managing a defined benefit pension scheme with substantial assets and numerous members.  

When a long-serving in-house scheme secretary at a leading charity retired, the organisation took the opportunity to explore outsourcing options. After a comprehensive market review, the charity chose Barnett Waddingham to manage the transition and deliver ongoing secretarial services. 

The challenge: Transition from in-house to outsourced secretarial services

The charity had relied on in-house secretarial support for its defined benefit pension scheme, which served nearly 2,000 members and managed assets totalling £255 million. With the imminent retirement of the in-house scheme secretary, the charity was faced with the challenge of finding a replacement. The organisation recognised the potential benefits of outsourcing this critical function but was concerned about ensuring a smooth transition without disrupting the ongoing operation of the pension scheme.

The key challenge was to seamlessly transition all in-house secretarial functions to an external provider while maintaining the continuity of operations. The charity required a partner that could handle the complexity of the transition, provide robust processes to ensure nothing was overlooked, and guarantee that the pension scheme’s operations would remain uninterrupted throughout the process.

The solution: Comprehensive transition and expert coordination

We were selected as the outsourced provider after a thorough market review. Our Pensions Executive Management Services team employed a structured approach to transition management, leveraging their extensive experience and proven methodologies to ensure a smooth handover of responsibilities.

Key deliverables and processes

• Detailed transition planning: We used a six-stage transition process, beginning with pre-contract data gathering and culminating in post-implementation review. Each stage was meticulously planned and executed, ensuring that all necessary steps were taken to secure a seamless transition.
• Secure file exchange system: To facilitate the transfer of large volumes of documentation, we employed our secure file sharing system. This technology ensured that all data was transferred quickly and securely, minimising the risk of errors or delays.
• Knowledge transfer and relationship building: Our team conducted 'getting-to-know-you' sessions with the charity’s trustee advisory teams and remaining in-house functions. These sessions were essential in ensuring that the new secretarial team fully understood the scheme’s requirements and could hit the ground running.
• Regular communication and reporting: Throughout the transition, regular updates were provided to the scheme trustee board, ensuring transparency and maintaining the trustees’ confidence in the process. The use of a detailed transition checklist also provided a clear audit trail, demonstrating the thoroughness and care taken at each step.

The outcome: A smooth and successful transition with added value

The transition from in-house to outsourced scheme secretarial services was completed on time and without any disruption to the pension scheme’s operations. A structured approach, combined with our deep expertise, ensured that all internal processes, practices and procedures were seamlessly transferred.

Key outcomes:

• Continuity of service: The pension scheme continued to operate smoothly throughout the transition period, with no interruptions or issues arising from the change in secretarial support.
• Enhanced processes: Beyond simply replicating the in-house processes, we identified and implemented several improvements that streamlined operations and increased efficiency. These enhancements provided additional value to the charity and contributed to a more robust governance framework.
• Client satisfaction: The charity’s trustees expressed high levels of satisfaction with the transition process. They were particularly impressed with our team’s expertise and the proactive steps taken to improve existing practices.

Lessons learned:

One area identified for improvement was the timing of the contractual agreement. The transition team recognised that starting the contract finalisation earlier in the process would have further streamlined the transition. This insight has been incorporated into future transition plans to ensure even greater efficiency.

Facing similar challenges?

Our expert handling of the transition from in-house to outsourced secretarial services for this charity’s DB scheme showcases our ability to manage complex transitions smoothly and efficiently. The project not only achieved the client’s objectives but also delivered enhanced processes and demonstrated our commitment to adding value at every stage.

If you'd like us to help you meet your specific scheme objectives, please get in touch and we'll be happy to talk through your hurdles.