Roberts Pension Digest - Edition 2

Roberts Pension Digest - Edition 2

I recently attended two excellent PMI conferences, where the content and speakers were highly relevant to today’s pensions landscape. Innovation in both process and technology was evident, but the real focus was on data. The industry is finally recognising that without complete, accurate, and up-to-date data, even the most sophisticated systems will fail —“garbage in, garbage out” still applies.

Many schemes assume they have good data because administrators meet deadlines and complaints are low. Yet, if they need to review member files for checking, data quality may be lacking.

Good data means:

• Complete and accurate records
• Up-to-date details (e.g. current addresses)
• Regular monitoring (e.g. mortality checks)

Why it matters:

• Correct benefit calculations
• Secure and accurate communications
• Fewer errors and complaints
• Accurate buyout costs
• Swifter transition through buy in and buyout
• Reliable scheme valuations
• Better alignment of investments with liabilities

Trustee support is essential, even for schemes that believe their data is sound. The benefits include:

• Stronger member engagement
• More accurate outcomes
• Confident online access for members
• Improved member experience
• Informed decision-making
• Better understanding of buy in and buyout costs
• More accurate measure of any potential surplus
• Funding discussions based on reliable data

Lots of schemes now have professional trustees involved to help drive the analysis and cleaning of data, but statistics show that around 43% of defined benefit schemes still have no professional trustee involved. That’s around 2,200 schemes.

To start the process or get member engagement, schemes need to make sure they have addresses for all their members, and that they monitor mortality. Then you are communicating with all your members.

If you are attending the Pensions UK Conference in Manchester in October, please come and have a chat with us.

Robert