Pensions Data Service
Most pension schemes have been running for many years during which time there have been very significant changes in administration methods and scheme computerisation. Scheme records have often been held in the past on a variety of payroll and computer systems as well as in paper records.
The key to efficient administration however is the establishment of an electronic membership database that contains all the key data that can be used to provide benefit calculations and to administer the pension scheme.
Trustees and scheme sponsors have a wide range of responsibilities in relation to maintaining and keeping secure the detailed and sensitive data that they hold including:
- Compliance with requirements of data protection legislation
- Ensuring data cannot be misused (for example fraud including identity theft)
- Ensuring data is protected in the event of unforseen events (business continuity, disaster recovery)
- Ensuring data is complete, accurate and fit for the purpose to which it is put
The result of poor quality, widely dispersed, inconsistent or incomplete member records must be to reduce quality and flexibility and to increase cost as time is spent rectifying data often at a time when speed is of the essence. Some of the areas most impacted by this are:
- Inefficient, delayed or inaccurate provision of member information and difficulty with bulk communication (the root cause of virtually all problems encountered in pensions administration is poor data).
- Slow and expensive actuarial valuations and pension scheme annual reports.
- Seriously delayed implementation of risk reduction initiatives (e.g. Buy-Out, Enhanced Transfer Exercises etc.)
- Inability to take advantage of short term opportunities where comprehensive electronic data is required, such as partial or total buyout.
- Lack of flexibility to respond to major changes such as business sale or merger.
Independent data and benefit audits are the first steps to assess the extent and quality of the electronic records held to begin to identify any shortfalls and to prioritise any rectification necessary.
Spence & Partners as a leading firm of actuaries and pensions administrators with a specialism in Pensions Endgame services has unrivalled expertise in data and benefits audit and rectification. Our Data Services have been designed by experienced pensions managers and actuaries and allow trustees and scheme sponsors to take control of their pension scheme data to ensure it is fit for purpose.
For information on our Pensions Data Services contact Mark Johnson or David Davison on 0141 331 1004.
