Brightwell, the primary service provider to the BT Pension Scheme (BTPS), has launched a full self-serve online retirement journey for BTPS members, in what is thought to be an industry first for a defined benefit (DB) pension scheme.

The new system is expected to provide the "final piece of the jigsaw" to allow members to complete their retirement journey online, with between 7,000 and 8,000 BTPS members going through the retirement process each year, putting their BTPS pension into payment.

Currently, nearly two thirds (61 per cent) of BTPS members complete their retirement application online using the BTPS member portal, which was launched in 2021.

However, Brightwell pointed out that, for the final part of the process, members previously had to send copies of identity documents such as passport or driving licence through the post together with their pension application form, including a wet signature.

The new service is therefore leverages biometric identity verification and automatically diarises and pays out members’ pensions and lump sums. It is believed to be an industry first for a defined benefit (DB) scheme.

The new service leverages biometric identity verification to remove the need for wet signatures and ID to be posted, automatically diarising and paying out members’ pensions and lump sums.

The new service is designed to allow members to run retirement quotes to decide on their chosen option, confirm their choice, complete the application, verify their identity digitally and submit their application online.

This automatically sets up a settlement case, disinvests any additional voluntary contributions (AVCs) they may have, puts them into payment on their chosen pension start date, and converts them to pensioner status, all without any administrator involvement or manual intervention.

Brightwell partnered with Procentia and Onfido to introduce the digital identity verification and automatic settlement capability.

The service uses Onfido’s technology to verify user identities securely and quickly, using a photo of the members ID and a selfie.

In addition to this, the system automatically carries out a set of comprehensive checks on the member’s data and the automated calculation results to provide all the checks and balances that previously were carried out by administrators.

Where discrepancies are found, one of the team's administrators will carry out further checks before payments are made.

Commenting on the new portal, Brightwell deputy head of member services, Andy Whitelaw, said: “Since launch, over 125,000 members have registered for the BTPS online portal and the feedback has been overwhelmingly positive.

“With so many members choosing to start their retirement journey online, we wanted to put the final piece of the jigsaw in place, introducing digital identity verification so the whole process can be completed easily, securely and quickly online.

“We expect the majority of members coming up to retirement will choose to use this service for the convenience and security it offers, and this will reduce our post volumes, freeing up valuable administrator time which can then be used for handling complex cases, dealing with more vulnerable members and other initiatives to improve member service even further.”

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