Author: Lee Cook
For decades, Service Level Agreements (SLAs) have been the cornerstone of performance measurement in pensions administration. They provide a common language for things like speed, accuracy, and throughput, and they give a seemingly objective snapshot of how well an administrator is performing. This helps ensure operational discipline and provides tangible proof that contractual obligations are being met.
But pensions administration is so much more.
The SLA focus within industry remains a necessary part of the story, but it is far from the whole narrative. SLAs tell us that a task was completed and when. They celebrate administrative efficiency, but they are utterly silent on a crucial point: how a member felt about the experience.
That silence matters. Members often interact with their pensions at life’s pinch points – changing jobs, facing ill-health, planning retirement, and experiencing bereavement. In those moments, the quality of the experience shapes confidence, decision-making and, ultimately, outcomes. During these moments, their interaction with their pension administrator is key. If our reporting doesn’t illuminate that experience, we’re managing what’s easy to measure, not what’s essential to improve.
Why SLAs are no longer enough
SLAs emerged for good reasons, but key shifts in the industry have made their limitations impossible to ignore:
- Rising member expectations. People now benchmark every service against their best digital experiences elsewhere. Clunky forms, confusing acronyms or long queues jar in a world of instant confirmations and intuitive journeys.
- Complexity and consequences. Defined contribution choices, transfer risks, and scam exposure have raised the stakes. A technically correct process that leaves a member confused may be compliant, but it is not protective.
- Regulatory pressure. The FCA’s Consumer Duty has set a new bar for customer outcomes across financial services, and its influence is being felt by the pensions industry. While trustees themselves may not be directly bound, administrators and providers increasingly need evidence that member journeys deliver good outcomes, not just operational compliance. This is a cultural shift as much as a regulatory one, and it demands better data on experience, not just process.
- Trustee accountability. Good governance is not only about evidencing process; it’s about driving better outcomes. Boards increasingly want to understand quality of experience, not just quantity of tasks.
SLAs report the past. Members live in the present. Trustees need a view of both.
When the numbers look fine, but the experience doesn’t
Consider a member who receives an annual statement on time and error-free: an SLA pass. But the statement is dense and the projections hard to interpret. The member calls the helpline, waits, calls back again, then gives up, none the wiser. The SLA box may be ticked, but none of this is captured and the experience creates anxiety and inertia. Over time, that inertia compounds into lower engagement, poorer decisions, and worse outcomes.
Similarly, a bereavement case handled within SLA could feel cold or transactional if tone and support are misjudged. Efficiency without empathy won’t be experienced as service – especially at the most sensitive moments.
Trustees meet their fiduciary duty by ensuring administrative processes are sound, but they are not always empowered to truly understand or "drive real impact" for their members. So, if we were to change the status quo and design new reporting, what would it look like? What would we need to capture to move beyond the current limitations of stewardship reports?
A better standard for pensions administration
At Gallagher, we’ve considered it carefully. First and foremost, we would need to capture information in real-time. Instead of a periodic snapshot, imagine a dashboard that provides a "full and instant picture" of the member journey as it happens. We would be able to see not just the number of calls received, but the sentiment behind those calls. We would track not just how quickly a transfer was processed, but the member's level of engagement and understanding throughout the process.
This new reporting would go beyond the traditional SLA and focus on putting members at the heart of everything we do. This means breaking down the member experience into a more holistic framework, moving beyond just speed and accuracy:
- Clarity: Are communications and processes easy to navigate? Do members understand what to do next—and why? Clarity is the gateway to confidence; without it, even fast, accurate processes can leave people stuck.
- Empathy: Do interactions feel human, respectful and situationally aware, especially during important life events? Are vulnerable members identified and supported appropriately?
- Quality: Not just “how fast did we process?” but “how well was it done, and how much effort did the member expend?” Low effort, high quality service beats speed alone every time.
- Digital engagement: Are members using digital tools to complete key journeys? Do those journeys feel seamless and intuitive, with sensible hand offs to people when needed?
By focusing on these four areas, we can turn the abstract concept of member experience into something that is truly measurable, meaningful, and actionable. This allows for more valuable benchmarking, where schemes can compare not just how quickly they process a transfer, but the level of member satisfaction they achieve. This helps schemes identify and share best practices, ensuring every scheme can be a leader in providing a best-in-class member experience.
What trustees can do differently – starting now
Trustees don’t need to wait for a complete system overhaul to start making improvements. There are practical steps that can make a difference right now:
- Reframe the questions you ask. Alongside “Did we hit the SLA?” add “Where did members struggle most this quarter, and what are we changing as a result?” If the answer relies on anecdotes rather than data, there’s a measurement gap.
- Prioritise high-impact journeys. Focus on moments that most shape trust and outcomes, such as bereavement, retirement options, and transfers.
- Insist on member effort and clarity measures. A simple two-question pulse – “How easy was that?” and “How clear do you feel about your next step?” – can provide more insight than pages of SLA tables.
Governance improves when boards can see both how well the machine runs and how it feels to use it.
Leading the change
For us at Gallagher, this isn't a theoretical debate; it's the reality we work with every day as a pension’s administrator. We know SLAs matter, but they can't be the only measure of success. That’s why we've been rethinking what good looks like and building a way to make it real. We've developed an approach that combines operational discipline with genuine insight into the member experience. It's designed to give trustees the visibility they’ve been asking for and help schemes focus on what truly improves outcomes.
Our goal is simple: members who feel informed, supported, and confident at every stage of their journey. When clarity rises, confidence follows. When digital journeys just work, engagement grows. And when empathy is evident, trust deepens.
SLAs helped professionalise pensions administration, and they still have a place. But the future belongs to those who measure and manage what members actually experience. That's the standard our industry needs next.
If anything here resonates with you, get in touch with the Gallagher team and let’s explore what this could mean for your scheme.
