Solutions

Pension scheme data and benefit audit

Providing an efficient, accurate and cost effective service to pension scheme members relies upon high quality data and processes.

An independent data and benefit audit can ensure that the administration services delivered to members is up to expected standards.

Our latest brochure provides an overview of our pension scheme data audit service..

In June 2010 the Pensions Regulator (“tPR”) issued guidance on Record Keeping.

Some of the key points of this guidance are:

  • Poor record-keeping may lead to significant additional costs in a number of areas such as administration, error correction, claims from members, buy-outs, wind-ups and, potentially, may necessitate the making of more conservative actuarial assumptions. Where a scheme’s poor record keeping becomes known, it can cause reputational damage
  • To address these issues, this guidance details tPR’s approach to the testing and measurement of member record data, particularly in relation to:
    • common data – applicable to all schemes
    • conditional data – dependent on scheme type, structure and system design
    • numerical data – to aid understanding of the results
  • The guidance is aimed at trustees, providers and administrators, who as well as checking that data exists, need to ensure that their data is accurate. It sets out a proposed framework for data checking
  • The principles of good record-keeping apply to all work-based schemes and tPR have consulted with the Financial Services Authority (succeeded by the the Prudential Regulation Authority and the Financial Conduct Authority on 1 April 2013) in preparing this guidance as it applies to contract-based schemes
  • This guidance sets out good practice in helping to assess risks associated with member record-keeping. It describes an approach for measuring the presence of member data items which are important in the administration of a pension scheme

In April 2013 tPR published a scheme record keeping report which showed that there is still work to do when it comes to addressing the issue of data quality.

Jump forward to March 2014 and tPR has opened seven case investigations into scheme record-keeping following its thematic review.

This highlights that tPR is serious about data quality.

Veratta can undertake common and conditional data audits and comprehensive benefit audits on behalf of your pension scheme. Our purpose designed solution can be tailored to suit your needs and budget and our team have the experience to provide the insights and recommendations needed to maximise that value that your pension scheme gets back from your data and processes.

Call us on 028 9041 2888 or email us to find out more.