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Client Success Story London Pensions Fund Authority

Organisational ProfileThe London Pensions Fund Authority (LPFA) administers a £4.7bn pension fund providing Local Government Pension Scheme benefits to almost 20,000 employees of 200 not for profit organisations and around 40,000 pensioners, many of whom used to work for the Greater London Council and the Inner London Education Authority.

As well as administering its own fund LPFA provides a comprehensive range of pension services from full administration and pensions payroll to staff placement, data cleanse projects, pension websites and benefit statements as well as running a national LGPS training programme, looking after the pension benefits for around 250,000 individuals.

Business IssuePensions administrators in the UK are required to verify the identity of pensioners that live abroad on an annual basis. Recent figures released by the Department of Work and Pensions* indicate that international pension fraud cost the taxpayer around £50 million in 2012-13, which demonstrates how much could be saved by helping pension administrators confirm their overseas members’ identity.”

Our SolutionWestern Union Business Solutions recently trialled its Global Existence Transaction service, a new pension payments product that enables identity checks for overseas pensioners. Conducted in partnership with the London Pensions Fund Authority (LPFA), the trial resulted in savings of 5% of the funds in the pilot. The Existence service helps administrators meet their requirement to verify identify of pensioners that live abroad and enables them to send payments to overseas pensioners, requiring an annual in-person pick up at a local Western Union retail location. Western Union Global Existence Transaction launched in the United Kingdom in 2013 and will expand to additional markets this year. It leverages Western Union’s global agent network of over 500,000 locations in more than 200 countries and territories.

Business ResultsThe trial resulted in savings of 5% of the funds in the pilot. This figure represents the value of funds saved as a percentage of the total value of pensions that were included in the initial trial, which was conducted in 2013.

In addition, it was discovered that some pensioners who participated in the pilot had recently changed address. The Existence trial allowed LPFA to update personal information, including changes of address and email updates. These updated records will help ensure future communications go directly to the correct recipient, saving time and improving efficiency for both the pensioner and the pension fund administrator.

Jonathan Rees, UK managing director, Western Union Business Solutions, said “Ensuring overseas pension payments go to the right person is an issue pension administrators increasingly need to contend with as more retirees move abroad. The successful LPFA trial shows that significant savings can be made and the threat of fraud reduced. We are very pleased with the results of our initial roll out and anticipate strong demand as we move further into 2014.”

See what our client had to say…

“The LPFA prides itself in being a leader of public service pension provision. Our partnership with Western Union Business Solutions helps us ensure contributions are going to the right pensioners overseas. We are pleased that by working together we were able to achieve this result.

The Existence service was the best product available on the market that enabled us to confirm that overseas payments are being paid to the correct recipients. It also allowed us to update our pensioner records and has helped make the payments process as smooth as possible for both the overseas pensioner and the LPFA.”

Janice Watts, Director of Operations at London Pensions Fund Authority

Sector: Pensions

*Source: Department for Work & Pensions, Fraud & Error in the Benefit System, 2012/2013 Estimates – Jan 2014

To find out more, contact us today on Tel: 0800 096 1229Email: enquiriesuk@westernunion.comWeb: business.westernunion.co.uk

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Western Union Business Solutions is a division of The Western Union Company. Services in the UK are provided by Western Union Business Solutions (UK) Limited.

Western Union Business Solutions (UK) Limited (registered in England, Company Number 02854737, Registered Office Address: 65 Kingsway, London, WC2B 6TD) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2009 (Register Reference: 536611) for the provision of payment services and is registered as an MSB with HM Revenue & Customs (Registered No: 12122416).

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