Ensuring your scheme’s data is always up-to-date
Pension schemes must keep an accurate record of their members as per regulatory requirements to accurately identify scheme members and value their benefits.
The Pensions Regulator expects schemes to review data annually and to understand their data score, which is a measure of the quality of it. But for many schemes, data is only reviewed when it is required to be and therefore administrators and actuaries are often working with less than perfect data. It’s only when there’s a specific data-driven event (such as de-risking or GMP equalisation) that data comes into sharper focus.
Poor data records represent a regulatory failing and recent FCA activity shows the fines to be especially punitive. Firms would naturally want to avoid multi-million-pound fines but often lack in-house data specialists.
Our highly experienced and specialist team of pensions data consultants and administrators, the largest permanent UK team of trained, multiskilled and experienced staff, understand the unique requirements needed to help schemes fulfil their duties.
We provide services to help pension schemes run all data exercises, such as common data and conditional data analysis, with recommendations and steps to resolve data issues, as well as project-based data programmes such as GMP reconciliation, rectification and equalisation, and de-risking analysis.
We have contracts with all the major credit rating agencies with access to more than 420 million records provided by UK financial institutions, as well as international records. In 2020, we partnered with Intellica, a leading provider of data technology solutions.
A holistic approach is key to success
Data rectification projects should not be looked at in isolation but be part of an overall data strategy for the scheme. A data strategy enables you to:
- determine what data matters, understand data existence and quality, allowing you to put in rectification programmes to reduces risk, accurately calculate liabilities and increase data security
- prioritise data cleanse activity, scope return on investment and evaluate the benefits ensuring they are aligned to the scheme benefit structure and objectives
- improve operational efficiencies allowing you to deliver data cleanse cost-effectively
- meet regulatory compliance and drives action planning in line with the Pensions Regulator requirements
- deliver better customer engagement through digital self-service.