UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2024
STATEMENT REGARDING DC GOVERNANCE
In relation to AVCs held with Legal & General, the Trustee has delegated administrative oversight to Gallagher who report back to the Trustee on its performance against SLAs part of its quarterly reporting to both the Benefits Sub- s performance against SLAs relating to AVCs is provided in the table below:
Quarterly SLA Performance
Q1 24
Q2 24
Q3 24
Q4 24
67%
100%
54%
0%
administrator reports back to the Trustee with any specific issues relating to the administration of the separate AVC policies.
Issues occurring during the year
to Gallagher in May 2024. To oversee the transition, the Trustee set up an Administration Transfer Sub- Committee who overall were satisfied that the transfer was carried out smoothly.
Following the transfer, Gallagher raised with the Trustee that Aptia had failed to transfer historic member
hese
the Scheme year, which have fallen well short of agreed SLAs and resulted in increased member complaints over the period. The Trustee has taken t
A recovery plan is now in place with Gallagher to both improve ongoing servicing and clear the backlog of outstanding tasks. The Trustee is currently paying Gallagher reduced fees until Gallagher improves its service levels to acceptable levels. Gallagher are required to attend weekly check- update on progress and of discussion resolutions to outstanding cases. The Trustee has appointed its advisers Barnett Waddingham to carry out spot checks on core financial transactions to further monitor the accuracy of core financial transactions.
Assessment
Overall, the Trustee believes that the measures described above enable it to effectively monitor the promptness and accuracy of the core financial transactions the above issues into consideration, the Trustee is confident that it has robust controls relating to the processing of core financial transactions but acknowledges that performance levels during the reporting period fell short of expectations. The Trustee believes that it has taken appropriate steps to ensure core financial transactions are processed promptly and correctly, with an aim to return to expected service levels at the earliest opportunity, ensuring that that the Administration Regulations will be met.
Charges and transaction costs
The Administration Regulations require the Trustee to make an assessment of charges and transaction costs borne by members in respect of money purchase benefits and the extent to which those charges and costs represent good value for money for members.
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