Administration Manager Selection
Ensuring a first-class administration service is not just about picking the 'best' administrator. It involves establishing from the outset a clear understanding of the administration functions to be performed and the service standards which are to apply, and putting into place recording and reporting systems which ensure that trustees remain fully and promptly informed.
Administration managers play a central role in the operation of a superannuation scheme. While this is the case throughout the scheme year, it is particularly true of the annual review function, which requires advance planning and careful management if members are to receive accurate information within an acceptable time frame.
Achieving this presupposes a carefully-drafted administration agreement which leaves the parties in no doubt as to what functions are required, when they are to be performed and who is responsible for performing them.
The market for the provision of scheme administration services is a competitive one, with a number of well-resourced and credible providers. Technology enhancements over the years have resulted in real reductions in administration costs, and the resulting efficiency gains have tended to be shared with trustees and members through lower administration fees. If the administration fees applying to your scheme have shown an upward rather than a downward trend, then it is likely that they are in excess of currently-available rates.
National Benefits has the knowledge, expertise and industry standing to effectively review your scheme's administration arrangements.
Our Method
The service commences with a thorough appraisal of existing documentation and administration procedures, and the formulation of service content, performance expectations and service standards. A detailed Specification for Administration Services is prepared, which documents the day-to-day and annual review functions to be performed. A competitive market tender is then undertaken, with RFPs issued to an agreed list of prospective providers.
A detailed analysis of submissions is then undertaken in accordance with a criteria-based weightings methodology. A report is prepared which documents the results of the review, including separate analyses of service content, exclusions and pricing, and the calculation of quoted administration fees under various membership and movement scenarios. A preferred provider is identified, and contract terms are negotiated including the scope and content of services, reporting frequencies and timing, fees and contract conditions. The consulting service ensures the appointment of the most appropriate and competitive provider available from the market today.
Further Information
If you feel that you could benefit from an independent review of your scheme's administration management, please contact us.
If you are not sure of whether a review is appropriate in your circumstances, or if you would like some indication of the prospective benefits of a review, then we can assess your existing arrangements and advise you of the best course of action.