The latest LoA Performance Index (LPI), published by Pension Lab, reveals continued improvement among slower-performing organisations, pointing to positive momentum driven by industry collaboration through its Fix LoA Action Group (FLAG).
Measured via Pension Lab’s digital LoA platform, the LPI is currently the only comprehensive performance index tracking how long it takes providers, platforms, and pension schemes to respond to Letters of Authority (LoAs). Now in its third edition, the LPI anonymously benchmarks the highest-volume LoA responders. In Q1 2025, the longest turnaround time was 18 days – an improvement from the longest average responding time of 40 days when the Index first launched in October 2024.
Scott Phillips, CEO and co-founder of Pension Lab, said:
"It's encouraging to see slower responders improving, but it's astonishing that in 2025, some of the most contacted providers still send reams of colour-printed letters in window envelopes. It's wasteful, environmentally damaging, and operationally frustrating – slowing down the entire process.
“The LPI highlights how much performance can vary, reflecting the inherent inconsistencies in the process. While we can process LoAs on the same day, these are still the exception. We’ve tightened and automated as much as of the LoA process as possible, achieving 50%-80% reductions in turnaround times – but ultimately, we remain at the mercy of the responding providers.
“Each quarter, we engage directly with these providers to share their results and discuss how we can continue to work together to improve response times. We also share performance insights with other large organisations, including platforms not on the LPI, to support broader improvements. These relationships and collaborative efforts are invaluable: they help us adapt to each provider’s systems, and in turn, they gain free insights to streamline their processes. It’s a mutual effort that benefits the entire advice ecosystem.”
The LPI forms part of the efforts by the Fix LoA Action Group – FLAG – an industry-wide, voluntary working group, with over 50 supporting organisations, established by Pension Lab to address systemic inefficiencies in the LoA process. FLAG’s work has already helped shape several collaborative initiatives, including the LoA Data Checklist Standard developed by Criterion.
Organisations looking to improve their LoA response times and operational efficiency are encouraged to engage with FLAG (via Chair, Justine Pattullo), and support wider adoption of LoA data and process standards.